Relates to the creation of a farm brewery license

Summary of provisions

Section 1 of the bill would amend ABCL § 3 to add a new subdivision 12-aaa defining "farm brewery."

Section 2 of the bill would amend ABCL § 3 to add a new subdivision 20-d-a defining "New York State labeled beer." The definition provides for a phase-in of the percentages of ingredients that must be grown or produced in New York.

Section 3 of the bill would amend article 4 of the ABCL to add a new § 51-a creating the farm brewery license.

Section 4 of the bill would amend ABCL § 56, subd. 1 to provide for a license fee for the farm brewery license.

Section 5 of the bill would amend ABCL § 56-a, subd. 1 to provide for a filing fee for a farm brewery license.

Section 6 of the bill would amend ABCL § 56-a, subd. 2 to provide for a filing fee for a renewal of a farm brewery license.

Section 7 of the bill would amend ABCL § 76-a, subd. 6 by adding a new paragraph g that would allow licensed farm wineries to sell New York state labeled beer at retail for consumption off the premises.

Section 8 of the bill would amend ABCL § 76-a, subd. 6 by adding a new paragraph h that would allow licensed farm wineries to conduct tastings of New York State labeled beer at the farm winery.

Section 9 of this bill would amend Agriculture and Markets Law § 16, subd. 42 to provide the Commissioner of Agriculture and Markets with

certain powers in the event the necessary ingredients to brew New York State labeled beer are not available within the state.

Section 10 of the bill provides for an effective date of 180 days after the bill is signed.

Existing law

All licenses to manufacture beer are issued under ABCL § 51. The only distinction made is for "micro-brewers" (those producing less than 60,000 barrels annually) which pay a reduced license fee. Brewers have a limited ability to sell their products at retail. In addition, there are restrictions on the activities that can be conducted at a licensed brewery.

Prior legislative history

This is a new proposal.

Statement in support

As noted in the New York State Law Revision Commission's Report on the Alcoholic Beverage Control Law, beer produced by craft brewers is becoming increasing popular. However, as also discussed in the report, the most significant obstacle facing these businesses is their inability to compete with larger domestic and multi-national brewers. This bill would provide small craft brewers with additional opportunities to market their products. The provisions of new ABCL § 51-a are modeled on similar provisions for farm wineries in ABCL § 76-a and for farm distilleries in ABCL § 61(2-c). The farm winery and farm distillery licensing programs have been an integral part of promoting these industries in New York.

By allowing farm breweries to expand the activities that can be conducted at the licensed premises, these businesses, much like farm wineries, will become destination locations that will promote tourism within their communities. In addition, the need for ingredients in the manufacture of New York State labeled beer would create a sustained demand for products from New York's farmers.

Budget implications

None.

Effective date

This act would take effect on the 180th day after it becomes law.