Authorizes the liquor authority to issue farm brewery licenses for the manufacture and sale of beer on farms

Summary of provisions

Section 1

Creates a new Section 51-a to the ABC authorizing the SLA to provide a Farm Brewery License to applicants who meet specific criteria.

Licensee's shall be authorized to operate a farm brewery, sell their products in bulk to other licensed farm breweries or farm distilleries and to licensed retailers and wholesalers for consumption off the premises. Such license shall also authorize the holder thereof to sell cider and beer at retail for consumption on or off the premises (can also sell for on premises consumption if licensee also operates a restaurant, conference center, inn, B&B or hotel.

Authorizes licensees to manufacture, bottle, and sell complimentary items such as food condiments, mustards, sauces, hop seasonings, beer nuts and other beer related foods and crafts on and from the licensed premises.

Such license shall authorize licensees to sell non-alcoholic beverages for consumption on or off the premises; food items for the purpose of tastings; locally produced farm products for consumption upon the Premises; beer supplies and accessories; souvenir items; NYS labeled beer and liquors; and beer making equipment.

This section authorizes the SLA to promulgate rules and regulations to effectuate the purposes of this subdivision.

Provides licensees may engage in any other business on the premises subject to the rules and regulations as the SLA may prescribe.

Requires licensed farm breweries to manufacture and sell beer with no less than the following states ingredients grown or produced in NYS:

For the first 5 years - no less than 25% of its hops and no less than 40% of all other ingredients must be grown or produced in NYS;

For the next succeeding 5 years - no less than 60% of its hops and no less than 75% of all other ingredients grown or produced in NYS;

For the further years - no less than 90% of its hops and no less than 90% of all other ingredients grown or produced in NYS.

In the event of a natural disaster or other condition which has destroyed much of the necessary ingredients, as prescribed by the

Commissioner of Ag and Markets, with consultation of the Chairman of the SLA, may give dispensation for such breweries to use out-of-state ingredients.

Requires the Commissioner of Ag and Markets to provide on or before August 20 of each year, shall provide a report on loss determination.

A farm brewery license shall authorize the holder thereof to:

Buy and sell any New York labeled and licensed beer;

Serve as broker of any New York labeled and licensed beer and impose a fee or commission for such brokerage;

Warehouse any New York labeled and licensed beer on the premises of the farm brewery;

Deliver or transport any New York labeled and licensed beer in any vehicle owned, leased or hired by the licensee.

New York labeled beer can be delivered, transported or sold to any holder of:

A brewery or farm license;

A license to sell alcoholic beverages for consumption on the premises;

A license to sell alcoholic beverages for consumption off the premises;

Any person that can receive or purchase beer from a farm brewery; and

The licensee is not required to obtain a trucking permit from the SLA or pay any fees pursuant to ABC section 94.

Conduct tastings of New York labeled liquors manufactured by the holder of class A-1, B-1 or C distiller permits.

No licensed farm brewery shall manufacture in excess of fifteen thousand finished barrels of beer annually.

Section 2

Adds a new Subdivision 4-a to Section 3 of the ABC to define "farm brewer" or "farm brewery" to mean and include any place or premises, located on a farm in NYS, in which beer is manufactured and sold.

Section 3

Adds a new Subdivision 45 to Section 16 of the Ag and Markets Law to authorizes the Department of Ag and Markets to investigate and compile information on natural disasters, acts of god or continues adverse weather conditions which shall affect the crop of products and ingredients used in the production of beer.

Section 4

Adds a new Section 51-b to the ABC Law regarding special provisions, limitations, liability and rules and regulations relating to tastings at breweries and farm breweries holding a distillers license.

Section 5

Adds a new subdivision 9 to Section 51 of the ABC Law to authorize one or more farm brewery licensees to apply to the SLA for a license to singly or jointly sell beer at retail for consumption on or off premises to certain types of licensed establishments. This section sets a fee schedule for such licensees and delineates what other activities such licensees may engage in. This section further authorizes the SLA to adopt rules necessary to carry out the purpose of this subdivision, provided that all licenses issued pursuant to this subdivision shall be subject to the same rules and regulations as applicable to the sale of beer at retail for consumption off the premises of the farm brewery license.

Section 6

Adds a new subdivision 1-a to Section 56 of the ABC Law to set an annual fee of three hundred and twenty dollars for a farm brewery license.

Section 7

States this bill shall take effect on the one hundred eightieth day after is shall have become a law, provided, however that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made and completed on or before such date,

Justification

New York State breweries provide business and tourism opportunities within their communities. This legislation will promote the creation of small craft-style breweries throughout the State of New York. This measure will help New York's farmers develop a sustainable agribusiness by re-localizing and revitalizing hop production and processing within our State. This legislation is necessary to authorize and incentivize the creation of small craft breweries and the ancillary business opportunities they generate and expand marketing opportunities for farms by facilitating the sale of New York State farm products within such farm breweries.

Legislative history

This is a new Bill

Fiscal implications

This legislation will provide revenue to the state and its localities through the creation of farming, processing and manufacturing jobs as well as other business and marketing opportunities for farms and small craft-breweries. Further this legislation will generate revenue through the imposition of fees levied for licenses and tax revenue generated through the sale of raw and finished products.

EFFECTIVE DATE:; This legislation shall take effect 180 days after it shall have become a law