Provides for the operation of home beer makers centers, home cider makers centers and home wine makers centers

Section 2: Adds ABC Law section 52 to create a new custom beermakers' center license that authorizes the operation of a custom beermakers' center facility to provide individuals with rental space (to make and store homemade beer), the use of equipment and storage facilities, and/or beer making supplies for the production of beer for personal household use and not for commercial use or resale purposes. It defines beer making supplies as products grown or produced in New York in quantity amounts as determined by the State Liquor Authority. A custom beermakers' center licensee would be authorized, if permitted by the Federal Alcohol and Tobacco Tax and Trade Bureau,(TTB) to conduct training classes on how to manufacture beer and conduct certain tastings of beer produced on the premises.

Section 3: Provides an annual fee of $320 for custom beermakers' center license.

Section 4: Provides for filing fees and refunds.

Section 5: Adds a new ABC Law section 58-d to create a new custom cidermakers' center license that authorizes the operation of a custom cidermakers' center facility to provide individuals with rental space (to make homemade wines), the use of equipment and storage facilities, and/or fruit for the production of cider for personal household use and not for resale purposes. It defines fruit as apples or other pome fruits that are grown or produced in New York. A custom cider center licensee would be authorized, if permitted by the Federal TTB, to conduct training classes on how to manufacture cider and conduct certain tastings of cider produced on the premises. The annual fee for an incubator beer center license is $320.

Section 6: Adds a new ABC Law section 77 to create a new custom winemakers' center license that authorizes the operation of a custom winemakers' center facility to provide individuals with rental space, the use of equipment and storage facilities, and/or fruit for the production of wine for personal household use and not for resale purposes. It defines fruit as products grown or produced in New York. A custom winemakers' center licensee would be authorized, if permitted by the Federal TTB, to conduct training classes on how to manufacture wine and conduct certain tastings of wine produced on the premises.

Section 7: Amends ABC Law section 83 to provide an annual fee of $320 for an custom winemakers' center license.

Section 8 provides an effective date.

Existing law

Federal law deems that the home production of limited amounts of beer, cider, and wine, for home and personal consumption, to be exempt from federal licensing and registration requirements and taxation (i.e. it does not need to be produced by a bonded facility). Many states have adopted laws to allow for such custom beer/cider/winemakers' centers to be established or have deemed them to be authorized since they are exempt from federal jurisdiction. Under federal regulations, New York can adopt a law to authorize these custom beer/cider/winemakers' centers for them to be allowed to exist in this state.

Justification

This bill should help to facilitate the production of homemade beer, cider, and wine. It encourages production of these beverages by allowing licensees to operate a licensed facility where individuals can rent space, equipment, and storage facilities to manufacture them for personal consumption. Further, assistance could be provided to these hobbyist beer, cider, and wine makers. This lowers the overhead costs for home or personal production and provides space for enthusiasts who do not have room where they live to produce homemade beer/cider or wine.

In addition, such custom centers can conduct training courses on how to produce beer, cider, or wines. By providing these courses, as well as any ingredients that may be needed, the custom centers would increase the demand for locally grown fruits and beer ingredients, providing additional markets for New York farmers.

For many urban and suburban residents, they often do not have appropriate space to make homemade beer, cider, or wine in their homes or apartments and purchasing equipment is cost prohibitive. Establishing the custom beer, cider or wine makers' centers would provide the kinds of facilities that these residents need. Such centers could also be located in villages and towns that are near local fruit farms or in cities, where there is a growing interest in producing homemade beer, cider, and wine.

In addition, this bill may help to encourage expansion of the grape and other fruit growing industries, as well as hops and barley in this State. This is because it would increase the demand for locally grown New York agricultural products. This idea came from apple and grape farmers who wanted to establish such a Center on their farm so that they could increase the sales of their apple and grape crops. In addition, economic activity could be generated from the sale of beer, cider, and wine making supplies and leasing space for the making of homemade products.

Further, by encouraging such custom beer, cider, or winemakers' centers to use locally grown or produced products, this may increase the demand for, and sales of, New York's commercially produced alcohol because they use the same products as these custom centers will use.

It is hoped that by increasing the number of custom beer, cider and winemakers' centers, this will increase the "talent pool" of beer, cider, and wine makers available for employment in commercial facilities. Many home producers have "graduated" to working either full-time or part-time in already established commercial facilities. Further, some of these hobbyist alcoholic beverage makers have even gone on to establish their own breweries, cideries, and wineries to sell their products commercially. It is important to increase the overall skill and experience of beer, cider, and wine makers available for employment in this growing industry.

Another benefit of this bill is to authorize current licensed manufacturers to establish ancillary businesses to increase their overall profit margin. By enacting this bill into law, breweries, cideries, and wineries could increase the utilization of their otherwise idle equipment and facilities, increase sales of New York State products that are grown locally, but are not being utilized by commercial operations, and collect rent for their underutilized space within their facilities to individuals wishing to use a custom beer, cider or winemakers' center.

Fiscal implications

None.

Local fiscal implications

None.

Effective date

180 days after it shall have become law.