STATE OF NEW YORK
________________________________________________________________________
8047
2013-2014 Regular Sessions
IN ASSEMBLY
June 17, 2013
___________
Introduced by M. of A. SCHIMMINGER -- (at request of the Governor) --
read once and referred to the Committee on Economic Development
AN ACT to amend the alcoholic beverage control law and the agriculture
and markets law, in relation to the creation of a farm cidery license
and to amend the tax law, in relation to farm cidery sales tax infor-
mation return filing requirements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 7-b of section 3 of the alcoholic beverage
2 control law, as amended by chapter 578 of the laws of 1978, is amended
3 to read as follows:
4 7-b. (a) "Cider" means the partially or fully fermented juice of
5 fresh, whole apples or other pome fruits, containing more than three and
6 two-tenths per centum but not more than [seven] eight and one-half per
7 centum alcohol by volume[, when used for beverage purposes, and]: (i) to
8 which nothing has been added to increase the alcoholic content produced
9 by natural fermentation; and (ii) with the usual cellar treatments and
10 necessary additions to correct defects due to climate, saccharine levels
11 and seasonal conditions. Nothing contained in this subdivision shall be
12 deemed to preclude the use of such methods or materials as may be neces-
13 sary to encourage a normal alcoholic fermentation and to make a product
14 that is free of microbiological activity at the time of sale. Cider may
15 be sweetened or flavored after fermentation with [apple] fruit juice,
16 [apple] fruit juice concentrate, [or] sugar, maple syrup, honey, spices
17 or other agricultural products, separately or in combination. Cider may
18 contain retained or added carbon dioxide.
19 (b) In the event that an alcoholic beverage meets the definition of
20 both a cider, as defined in this subdivision, and a wine, as defined in
21 subdivision thirty-six of this section, the brand or trade name label
22 owner of such alcoholic beverage shall designate whether such alcoholic
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12041-01-3
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1 beverage shall be sold as a cider or a wine for all purposes under this
2 chapter.
3 § 2. Section 3 of the alcoholic beverage control law is amended by
4 adding two new subdivisions 7-c and 7-d to read as follows:
5 7-c. "Cidery" means and includes any place or premises wherein cider
6 is manufactured for sale.
7 7-d. "Farm cidery" means and includes any place or premises, located
8 on a farm in New York state, in which New York state labelled cider is
9 manufactured, stored and sold, or any other place or premises in New
10 York state in which New York state labelled cider is manufactured,
11 stored and sold.
12 § 3. Subdivision 20-e of section 3 of the alcoholic beverage control
13 law, as added by chapter 108 of the laws of 2012, is amended to read as
14 follows:
15 20-e. "New York state labelled cider" means cider made exclusively
16 from apples or other pome fruits grown in New York state.
17 § 4. Subdivisions 1 and 3 of section 58 of the alcoholic beverage
18 control law, subdivision 1 as amended and subdivision 3 as added by
19 chapter 347 of the laws of 1999, are amended to read as follows:
20 1. Any person may apply to the liquor authority for a cider producers'
21 or wholesalers' license as provided for in this subdivision. Such appli-
22 cation shall be in writing and shall contain such information as the
23 liquor authority shall require. Such application shall be accompanied by
24 a check or draft for the amount required by this subdivision for such
25 license. If the liquor authority shall grant the application it shall
26 issue a license in such form as shall be determined by its rules. A
27 license issued under this subdivision shall authorize the licensee to
28 manufacture cider within the licensed premises in this state for sale in
29 bottles, barrels or casks to beer, wine and liquor retail licensee
30 and/or to sell cider at wholesale from the licensed premises to such
31 licensees and to holders of licenses under this section in bottles,
32 barrels or casks and to sell and deliver cider to persons outside the
33 state pursuant to the laws of the place of such sale or delivery. The
34 annual fee for such a license shall be one hundred twenty-five dollars;
35 provided, however, that the annual fee for a farm cidery license shall
36 be seventy-five dollars. The provisions contained in section sixty-sev-
37 en of this chapter shall apply to all licenses issued pursuant to this
38 article.
39 3. Notwithstanding any provision of this chapter to the contrary, a
40 licensed cider [producer or] wholesaler may apply to the liquor authori-
41 ty for a permit to sell New York state labelled cider by the bottle and
42 conduct cider tastings at the state fair, at recognized county fairs and
43 at farmers markets operated on a not-for-profit basis. As a condition of
44 such permit, an agent, representative or solicitor from the cider
45 [producer or] wholesaler shall be present at the time of sale or tast-
46 ings.
47 § 5. Section 58 of the alcoholic beverage control law is amended by
48 adding a new subdivision 3-a to read as follows:
49 3-a. A licensed cider producer producing New York state labelled cider
50 may:
51 (a) sell such cider to licensed farm distillers, farm wineries, farm
52 cideries and farm breweries. All such cider sold by the licensee shall
53 be securely sealed and have attached thereto a label as shall be
54 required by section one hundred seven-a of this chapter;
55 (b) conduct tastings at the licensed premises of such cider;
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1 (c) sell such cider at retail for consumption off the premises at the
2 state fair, at recognized county fairs and at farmers markets operated
3 on a not-for-profit basis;
4 (d) sell and conduct tastings of such cider at retail for consumption
5 on the premises of a restaurant, conference center, inn, bed and break-
6 fast or hotel business owned and operated by the licensee in or adjacent
7 to its farm cidery. A licensee who operates a restaurant, conference
8 center, inn, bed and breakfast or hotel pursuant to such authority shall
9 comply with all applicable provisions of this chapter which relate to
10 licenses to sell cider at retail for consumption on the premises;
11 (e) apply for a permit to conduct tastings away from the licensed
12 premises of such cider. Such permit shall be valid throughout the state
13 and may be issued on an annual basis or for individual events. Each such
14 permit and the exercise of the privilege granted thereby shall be
15 subject to such rules and conditions of the authority as it deems neces-
16 sary. Tastings shall be conducted subject to the following conditions:
17 (i) tastings shall be conducted by an official agent, representative
18 or solicitor of the licensee. Such agent, representative or solicitor
19 shall be physically present at all times during the conduct of the tast-
20 ings; and
21 (ii) any liability stemming from a right of action resulting from a
22 tasting of cider as authorized herein and in accordance with the
23 provisions of sections 11-100 and 11-101 of the general obligations law,
24 shall accrue to the licensee.
25 (f) if it holds a tasting permit issued pursuant to paragraph (e) of
26 this subdivision, apply to the authority for a permit to sell such
27 cider, for consumption off the premises, during such tastings in prem-
28 ises licensed under sections sixty-four, sixty-four-a, eighty-one and
29 eighty-one-a of this chapter. Each such permit and the exercise of the
30 privilege granted thereby shall be subject to such rules and conditions
31 of the authority as it deems necessary.
32 § 6. The alcoholic beverage control law is amended by adding a new
33 section 58-c to read as follows:
34 § 58-c. Farm cidery license. 1. Any person may apply to the authority
35 for a farm cidery license as provided for in this section to produce
36 cider within this state for sale. Such application shall be in writing
37 and verified and shall contain such information as the authority shall
38 require. Such application shall be accompanied by a check or draft for
39 the amount required by this article for such license. If the authority
40 grants the application, it shall issue a license in such form as shall
41 be determined by its rules. Such license shall contain a description of
42 the licensed premises and in form and in substance shall be a license to
43 the person therein specifically designated to produce cider in the prem-
44 ises therein specifically licensed.
45 2. A farm cidery license shall authorize the holder thereof to operate
46 a cidery for the manufacture of New York state labelled cider. Such a
47 license shall also authorize the licensee to:
48 (a) sell in bulk cider manufactured by the licensee to any person
49 licensed to manufacture alcoholic beverages in this state or to a
50 permittee engaged in the manufacture of products which are unfit for
51 beverage use;
52 (b) sell or deliver cider manufactured by the licensee to persons
53 outside the state pursuant to the laws of the place of such delivery;
54 (c) sell cider manufactured by the licensee to wholesalers and retail-
55 ers licensed in this state to sell such cider, licensed farm distillers,
56 licensed farm wineries, licensed farm breweries and any other licensed
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1 farm cidery. All such cider sold by the licensee shall be securely
2 sealed and have attached thereto a label as shall be required by section
3 one hundred seven-a of this chapter;
4 (d) sell at the licensed premises cider manufactured by the licensee
5 or any other licensed farm cidery at retail for consumption on or off
6 the licensed premises;
7 (e) conduct tastings at the licensed premises of cider manufactured by
8 the licensee or any other licensed farm cidery;
9 (f) sell and conduct tastings of cider manufactured by the licensee or
10 any other licensed farm cidery at retail for consumption on the premises
11 of a restaurant, conference center, inn, bed and breakfast or hotel
12 business owned and operated by the licensee in or adjacent to its farm
13 cidery. A licensee who operates a restaurant, conference center, inn,
14 bed and breakfast or hotel pursuant to such authority shall comply with
15 all applicable provisions of this chapter which relate to licenses to
16 sell cider at retail for consumption on the premises;
17 (g) sell cider manufactured by the licensee or any other licensed farm
18 cidery at retail for consumption off the premises, at the state fair, at
19 recognized county fairs and at farmers markets operated on a not-for-
20 profit basis;
21 (h) conduct tastings of and sell at retail for consumption off the
22 premises New York state labeled beer manufactured by a licensed brewery
23 or licensed farm brewery;
24 (i) conduct tastings of and sell at retail for consumption off the
25 premises New York state labelled wine manufactured by a licensed winery
26 or licensed farm winery;
27 (j) conduct tastings of and sell at retail for consumption off the
28 premises New York state labelled liquor manufactured by a licensed
29 distiller or licensed farm distiller; provided, however, that no consum-
30 er may be provided, directly or indirectly: (i) with more than three
31 samples of liquor for tasting in one calendar day; or (ii) with a sample
32 of liquor for tasting equal to more than one-quarter fluid ounce; and
33 (k) engage in any other business on the licensed premises subject to
34 such rules and regulations as the authority may prescribe. Such rules
35 and regulations shall determine which businesses will be compatible with
36 the policy and purposes of this chapter and shall consider the effect of
37 particular businesses on the community and area in the vicinity of the
38 farm cidery licensee.
39 3. (a) A farm cidery licensee may apply for a permit to conduct tast-
40 ings away from the licensed premises of cider produced by the licensee.
41 Such permit shall be valid throughout the state and may be issued on an
42 annual basis or for individual events. Each such permit and the exercise
43 of the privilege granted thereby shall be subject to such rules and
44 conditions of the authority as it deems necessary.
45 (b) Tastings shall be conducted subject to the following limitations:
46 (i) tastings shall be conducted by an official agent, representative
47 or solicitor of one or more farm cideries. Such agent, representative or
48 solicitor shall be physically present at all times during the conduct of
49 the tastings; and
50 (ii) any liability stemming from a right of action resulting from a
51 tasting of cider as authorized herein and in accordance with the
52 provisions of sections 11-100 and 11-101 of the general obligations law,
53 shall accrue to the farm cidery.
54 4. A licensed farm cidery holding a tasting permit issued pursuant to
55 subdivision three of this section may apply to the authority for a
56 permit to sell cider produced by such farm cidery, by the bottle, during
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1 such tastings in premises licensed under sections sixty-four, sixty-
2 four-a, eighty-one and eighty-one-a of this chapter. Each such permit
3 and the exercise of the privilege granted thereby shall be subject to
4 such rules and conditions of the authority as it deems necessary.
5 5. A licensed farm cidery may, under such rules as may be adopted by
6 the authority, sell cider manufactured by the licensee or any other
7 licensed farm cidery at retail in bulk by the keg, cask or barrel for
8 consumption and not for resale at a clam-bake, barbeque, picnic, outing
9 or other similar outdoor gathering at which more than fifty persons are
10 assembled.
11 6. A licensed farm cidery may apply to the authority for a license to
12 sell beer, liquor and/or wine at retail for consumption on the premises
13 in a restaurant owned by him and conducted and operated by the licensee
14 in or adjacent to its farm cidery. All of the provisions of this chapter
15 relative to licenses to sell beer, liquor or wine at retail or consump-
16 tion on the premises shall apply so far as applicable.
17 7. A farm cidery license shall authorize the holder thereof to manu-
18 facture, bottle and sell food condiments and products such as mustards,
19 sauces, jams, jellies, mulling spices and other cider related foods in
20 addition to other such food and crafts on and from the licensed prem-
21 ises. Such license shall authorize the holder thereof to store and sell
22 gift items in a tax-paid room upon the licensed premises incidental to
23 the sale of cider. These gift items shall be limited to the following
24 categories:
25 (a) non-alcoholic beverages for consumption on or off premises,
26 including but not limited to bottled water, juice and soda beverages;
27 (b) food items for the purpose of complementing cider tastings, which
28 shall mean a diversified selection of food that is ordinarily consumed
29 without the use of tableware and can be conveniently consumed while
30 standing or walking. Such food items shall include but not be limited
31 to: cheeses, fruits, vegetables, chocolates, breads, mustards and crack-
32 ers;
33 (c) food items, which shall include locally produced farm products and
34 any food or food product not specifically prepared for immediate
35 consumption upon the premises. Such food items may be combined into a
36 package containing cider related products;
37 (d) cider supplies and accessories, which shall include any item
38 utilized for the storage, serving or consumption of cider or for decora-
39 tive purposes. These supplies may be sold as single items or may be
40 combined into a package containing cider;
41 (e) cider-making equipment and supplies including, but not limited to,
42 home cider-making kits, filters, bottling equipment, and books or other
43 written material to assist cider-makers and home cider-makers to produce
44 and bottle cider;
45 (f) souvenir items, which shall include, but not be limited to
46 artwork, crafts, clothing, agricultural products and any other articles
47 which can be construed to propagate tourism within the region.
48 8. Notwithstanding any provision of this chapter to the contrary, any
49 farm cidery licensee may charge for tours of its premises.
50 9. The holder of a license issued under this section may operate up to
51 five branch offices located away from the licensed farm cidery. Such
52 locations shall be considered part of the licensed premises and all
53 activities allowed at and limited to the farm cidery may be conducted at
54 the branch offices. Such branch offices shall not be located within,
55 share a common entrance and exit with, or have any interior access to
56 any other business, including premises licensed to sell alcoholic bever-
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1 ages at retail. Prior to commencing operation of any such branch office,
2 the licensee shall notify the authority of the location of such branch
3 office and the authority may issue a permit for the operation of same.
4 10. No farm cidery shall manufacture in excess of one hundred fifty
5 thousand gallons of cider annually.
6 11. (a) Except as provided in paragraph (b) of this subdivision, no
7 licensed farm cidery shall manufacture or sell any cider other than New
8 York state labelled cider.
9 (b) In the event that the commissioner of agriculture and markets,
10 after investigating and compiling information pursuant to subdivision
11 forty-two of section sixteen of the agriculture and markets law, deter-
12 mines that a natural disaster, act of God, or continued adverse weather
13 condition has destroyed much of the apple crop necessary for producing
14 cider, such commissioner, in consultation with the chairman of the
15 authority, may give authorization to a duly licensed farm cidery to
16 manufacture or sell cider produced from apples grown outside this state.
17 No such authorization shall be granted to a farm cidery licensee unless
18 such licensee certifies to such commissioner the quantity of New York
19 grown apples unavailable to such licensee due to such natural disaster,
20 act of God or continuing adverse weather condition and satisfies such
21 commissioner that reasonable efforts were made to obtain apples from a
22 New York state source for such cider making purpose. No farm cidery
23 shall utilize an amount of out-of-state grown apples exceeding the
24 amount of New York grown apples that such cidery is unable to obtain due
25 to the destruction of New York grown apples by a natural disaster, act
26 of God or continuing adverse weather condition as determined by the
27 commissioner of agriculture and markets pursuant to this subdivision.
28 For purposes of this subdivision, the department of agriculture and
29 markets and the authority are authorized to adopt rules and regulations
30 as they may deem necessary to carry out the provisions of this subdivi-
31 sion which shall include ensuring that in manufacturing cider farm
32 cideries utilize apples grown in New York state to the extent they are
33 reasonably available, prior to utilizing apples from an out-of-state
34 source for such purpose.
35 (c) The commissioner of agriculture and markets shall make available
36 to farm cideries and to the public each specific apple loss determi-
37 nation issued pursuant to paragraph (b) of this subdivision on or after
38 August twentieth of each year.
39 (d) In the event that the continuing effects of a natural disaster,
40 act of God, or adverse weather condition which occurred prior to August
41 twentieth of each year or the effects of a natural disaster, act of God,
42 or adverse weather condition which occurs subsequent to August twentieth
43 of each year results in any apple crop loss which meets the standards
44 provided in paragraph (b) of this subdivision, the commissioner of agri-
45 culture and markets, in consultation with the chairman of the authority,
46 may issue additional apple crop loss determinations and shall expe-
47 ditiously make available to farm cideries and to the public the loss
48 determination issued pursuant to this paragraph prior to October tenth
49 of each year.
50 12. Notwithstanding any contrary provision of law or of any rule or
51 regulation promulgated pursuant thereto, and in addition to the activ-
52 ities which may otherwise be carried out by any person licensed under
53 this section, such person may, on the premises designated in such
54 license:
55 (a) produce, package, bottle, sell and deliver soft drinks and other
56 non-alcoholic beverages, vitamins, and other by-products;
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1 (b) recover carbon dioxide and yeast;
2 (c) store bottles, packages and supplies necessary or incidental to
3 all such operations;
4 (d) package, bottle, sell and deliver wine products;
5 (e) allow for the premises including space and equipment to be rented
6 by a licensed tenant cider producer for the purposes of alternation.
7 13. Notwithstanding any other provision of this chapter, the authority
8 may issue a farm cidery license to the holder of a farm brewery, farm
9 winery or farm distiller's license for use at such licensee's existing
10 licensed premises. The holder of a farm brewery, farm winery or farm
11 distiller's license that simultaneously holds a farm cidery license on
12 an adjacent premises may share and use the same tasting room facilities
13 to conduct any tastings that such licensee is otherwise authorized to
14 conduct.
15 14. The authority is hereby authorized to promulgate rules and regu-
16 lations to effectuate the purposes of this section. In prescribing such
17 rules and regulations, the authority shall promote the expansion and
18 profitability of cider production and of tourism in New York, thereby
19 promoting the conservation, production and enhancement of New York state
20 agricultural lands.
21 § 7. Subdivision 1 of section 56-a of the alcoholic beverage control
22 law, as amended by chapter 108 of the laws of 2012, is amended to read
23 as follows:
24 1. In addition to the annual fees provided for in this chapter, there
25 shall be paid to the authority with each initial application for a
26 license filed pursuant to section fifty-one, fifty-one-a, fifty-three,
27 fifty-eight, fifty-eight-c, sixty-one, sixty-two, seventy-six or seven-
28 ty-eight of this chapter, a filing fee of four hundred dollars; with
29 each initial application for a license filed pursuant to section sixty-
30 three, sixty-four, sixty-four-a or sixty-four-b of this chapter, a
31 filing fee of two hundred dollars; with each initial application for a
32 license filed pursuant to section fifty-three-a, fifty-four, fifty-five,
33 fifty-five-a, seventy-nine, eighty-one or eighty-one-a of this chapter,
34 a filing fee of one hundred dollars; with each initial application for a
35 permit filed pursuant to section ninety-one, ninety-one-a, ninety-two,
36 ninety-two-a, ninety-three, ninety-three-a, if such permit is to be
37 issued on a calendar year basis, ninety-four, ninety-five, ninety-six or
38 ninety-six-a, or pursuant to paragraph b, c, e or j of subdivision one
39 of section ninety-nine-b of this chapter if such permit is to be issued
40 on a calendar year basis, or for an additional bar pursuant to subdivi-
41 sion four of section one hundred of this chapter, a filing fee of twenty
42 dollars; and with each application for a permit under section ninety-
43 three-a of this chapter, other than a permit to be issued on a calendar
44 year basis, section ninety-seven, ninety-eight, ninety-nine, or ninety-
45 nine-b of this chapter, other than a permit to be issued pursuant to
46 paragraph b, c, e or j of subdivision one of section ninety-nine-b of
47 this chapter on a calendar year basis, a filing fee of ten dollars.
48 § 8. Subdivision 2 of section 56-a of the alcoholic beverage control
49 law, as amended by chapter 108 of the laws of 2012, is amended to read
50 as follows:
51 2. In addition to the annual fees provided for in this chapter, there
52 shall be paid to the authority with each renewal application for a
53 license filed pursuant to section fifty-one, fifty-one-a, fifty-three,
54 fifty-eight, fifty-eight-c, sixty-one, sixty-two, seventy-six or seven-
55 ty-eight of this chapter, a filing fee of one hundred dollars; with each
56 renewal application for a license filed pursuant to section sixty-three,
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1 sixty-four, sixty-four-a or sixty-four-b of this chapter, a filing fee
2 of ninety dollars; with each renewal application for a license filed
3 pursuant to section seventy-nine, eighty-one or eighty-one-a of this
4 chapter, a filing fee of twenty-five dollars; and with each renewal
5 application for a license or permit filed pursuant to section fifty-
6 three-a, fifty-four, fifty-five, fifty-five-a, ninety-one, ninety-one-a,
7 ninety-two, ninety-two-a, ninety-three, ninety-three-a, if such permit
8 is issued on a calendar year basis, ninety-four, ninety-five, ninety-six
9 or ninety-six-a of this chapter or pursuant to subdivisions b, c, e or j
10 of section ninety-nine-b, if such permit is issued on a calendar year
11 basis, or with each renewal application for an additional bar pursuant
12 to subdivision four of section one hundred of this chapter, a filing fee
13 of thirty dollars.
14 § 9. Paragraph (a) of subdivision 6-a of section 51 of the alcoholic
15 beverage control law, as added by chapter 108 of the laws of 2012, is
16 amended to read as follows:
17 (a) sell such beer to licensed farm distillers, farm wineries, farm
18 cideries and farm breweries. All such beer sold by the licensee shall be
19 securely sealed and have attached thereto a label as shall be required
20 by section one hundred seven-a of this chapter;
21 § 10. Paragraph (d) of subdivision 2 of section 51-a of the alcoholic
22 beverage control law, as added by chapter 108 of the laws of 2012, is
23 amended to read as follows:
24 (d) sell beer and cider manufactured by the licensee to wholesalers
25 and retailers licensed in this state to sell such beer and cider,
26 licensed farm distillers, licensed farm wineries, licensed farm cideries
27 and any other licensed farm brewery. All such beer and cider sold by the
28 licensee shall be securely sealed and have attached thereto a label as
29 shall be required by section one hundred seven-a of this chapter;
30 § 11. Paragraphs (j) and (k) of subdivision 2 of section 51-a of the
31 alcoholic beverage control law are relettered paragraphs (k) and (l) and
32 a new paragraph (j) is added to read as follows:
33 (j) conduct tastings of and sell at retail for consumption off the
34 premises New York state labelled cider manufactured by a licensed cider
35 producer or licensed farm cidery;
36 § 12. Subdivision 1 of section 61 of the alcoholic beverage control
37 law, as amended by chapter 108 of the laws of 2012, is amended to read
38 as follows:
39 1. A class A distiller's license shall authorize the holder thereof to
40 operate a distillery for the manufacture of liquors by distillation or
41 redistillation at the premises specifically designated in the license.
42 Such a license shall also authorize the sale in bulk by such licensee
43 from the licensed premises of the products manufactured under such
44 license to any person holding a distiller's class A license, a
45 distiller's class B license or a permittee engaged in the manufacture of
46 products which are unfit for beverage use. It shall also authorize the
47 sale from the licensed premises and from one other location in the state
48 of New York of any liquor whether or not manufactured by such licensee
49 to a wholesale or retail liquor licensee or permittee in sealed contain-
50 ers of not more than one quart each. Such license shall also authorize
51 the sale of New York state labelled liquor to licensed farm wineries,
52 farm cideries, farm distilleries and farm breweries in sealed containers
53 of not more than one quart each. Such license shall also include the
54 privilege to operate a rectifying plant under the same terms and condi-
55 tions as the holder of a class B distiller's license without the payment
56 of any additional fee.
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1 § 13. Subdivision 1-a of section 61 of the alcoholic beverage control
2 law, as amended by chapter 571 of the laws of 2008, is amended to read
3 as follows:
4 1-a. A class A-1 distiller's license shall authorize the holder there-
5 of to operate a distillery which has a production capacity of no more
6 than thirty-five thousand gallons per year for the manufacture of
7 liquors by distillation or redistillation at the premises specifically
8 designated in the license. Such a license shall also authorize the sale
9 in bulk by such licensee from the licensed premises of the products
10 manufactured under such license to any person holding a winery license,
11 farm winery license, distiller's class A license, a distiller's class B
12 license or a permittee engaged in the manufacture of products which are
13 unfit for beverage use. It shall also authorize the sale from the
14 licensed premises and from one other location in the state of New York
15 of liquors manufactured by such licensee to a wholesale or retail liquor
16 licensee or permittee in sealed containers of not more than one quart
17 each. In addition, it shall authorize such licensee to sell from the
18 licensed premises New York state labelled liquors to [a] licensed farm
19 [winery licensee] wineries, farm breweries, farm distilleries and farm
20 cideries in sealed containers of not more than one quart for retail sale
21 for off-premises consumption. Such license shall also include the privi-
22 lege to operate a rectifying plant under the same terms and conditions
23 as the holder of a class B-1 distiller's license without the payment of
24 any additional fee.
25 § 14. Paragraph (a) of subdivision 2-c of section 61 of the alcoholic
26 beverage control law, as amended by chapter 108 of the laws of 2012, is
27 amended to read as follows:
28 (a) A class D distiller's license, otherwise known as a farm distil-
29 lery license, shall authorize the holder of such a license to operate a
30 farm distillery at the premises specifically designated in the license:
31 (i) To manufacture liquor primarily from farm and food products, as
32 defined in subdivision two of section two hundred eighty-two of the
33 agriculture and markets law;
34 (ii) To put such liquor into containers of not more than one quart
35 each, which containers shall then be sealed and to sell such liquor at
36 wholesale, for resale, and to licensed farm wineries, farm cideries
37 [and], farm breweries[,] and other farm distilleries, wholesale and
38 retail licensees, and permittees;
39 (iii) To sell at retail, for personal use, in such sealed containers;
40 (iv) To sell in bulk, liquor manufactured by the licensee to a winery
41 or farm winery licensee, or to the holder of a class A, A-1, B, B-1 or C
42 distiller's license, or to the holder of a permit issued pursuant to
43 paragraph c of subdivision one of section ninety-nine-b of this chapter;
44 (v) To conduct tastings of and sell at retail for consumption off the
45 premises New York state labelled beer manufactured by a licensed brewer
46 or licensed farm brewery;
47 (vi) To conduct tastings of and sell at retail for consumption off the
48 premises New York state labelled cider manufactured by a licensed brew-
49 er, licensed farm brewery, licensed farm winery [or], licensed cider
50 producer or licensed farm cidery; and
51 (vii) To conduct tastings of and sell at retail for consumption off
52 the premises New York state labelled wine manufactured by a licensed
53 winery or licensed farm winery.
54 § 15. Paragraph (e) of subdivision 2 of section 76 of the alcoholic
55 beverage control law, as amended by chapter 108 of the laws of 2012, is
56 amended to read as follows:
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1 (e) to sell from the licensed premises to licensed farm wineries, farm
2 cideries, farm distilleries and farm breweries New York state labelled
3 wine manufactured by the licensee in the original sealed containers of
4 not more than fifteen gallons each; and
5 § 16. Paragraph (c) of subdivision 2 of section 76-a of the alcoholic
6 beverage control law, as amended by chapter 108 of the laws of 2012, is
7 amended to read as follows:
8 (c) sell from the licensed premises to a licensed winery, farm distil-
9 ler, farm brewery, farm cidery, wholesaler or retailer, or to a corpo-
10 ration operating railroad cars or aircraft for consumption on such
11 carriers, or at retail for consumption off the premises, wine or cider
12 manufactured by the licensee as above set forth and to sell or deliver
13 such wine or cider to persons outside the state pursuant to the laws of
14 the place of such sale or delivery. All wine or cider sold by such
15 licensee for consumption off the premises shall be securely sealed and
16 have attached thereto a label setting forth such information as shall be
17 required by this chapter;
18 § 17. Paragraph (h) of subdivision 6 of section 76-a of the alcoholic
19 beverage control law, as added by chapter 108 of the laws of 2012, is
20 amended to read as follows:
21 (h) Conduct tastings of and sell at retail for consumption off the
22 premises New York state labelled cider manufactured by a licensed brew-
23 er, licensed farm brewery, licensed farm winery [or], licensed cider
24 producer or licensed farm cidery.
25 § 18. Paragraph (c) of subdivision 42 of section 16 of the agriculture
26 and markets law, as added by chapter 108 of the laws of 2012, is amended
27 to read as follows:
28 (c) For purposes of making timely determinations and consulting with
29 the chairman of the state liquor authority pursuant to subdivision
30 twelve of section fifty-one-a and subdivision eleven of section fifty-
31 eight-c of the alcoholic beverage control law, investigate and compile
32 information relative to natural disasters, acts of God, or continued
33 adverse weather conditions which shall affect the crop of apples used in
34 the production of cider.
35 § 19. Paragraph (i) of subdivision 22 of section 210 of the tax law,
36 as amended by section 6 of part K of chapter 62 of the laws of 2006, is
37 amended to read as follows:
38 (i) Special rules. For purposes of this subdivision, the term "federal
39 gross income from farming" shall include gross income from the
40 production of maple syrup, cider, Christmas trees derived from a managed
41 Christmas tree operation whether dug for transplanting or cut from the
42 stump, or from a commercial horse boarding operation as defined in
43 subdivision thirteen of section three hundred one of the agriculture and
44 markets law, or from the sale of wine from a licensed farm winery as
45 provided for in article six of the alcoholic beverage control law, or
46 from the sale of cider from a licensed farm cidery as provided for in
47 section fifty-eight-c of the alcoholic beverage control law.
48 § 20. Paragraph 8 of subsection (n) of section 606 of the tax law, as
49 amended by section 3 of part K of chapter 62 of the laws of 2006, is
50 amended to read as follows:
51 (8) Special rules. For purposes of this subsection, the term "federal
52 gross income from farming" shall include gross income from the
53 production of maple syrup, cider, Christmas trees derived from a managed
54 Christmas tree operation whether dug for transplanting or cut from the
55 stump, or from a commercial horse boarding operation as defined in
56 subdivision thirteen of section three hundred one of the agriculture and
A. 8047 11
1 markets law, or from the sale of wine from a licensed farm winery as
2 provided for in article six of the alcoholic beverage control law, or
3 from the sale of cider from a licensed farm cidery as provided for in
4 section fifty-eight-c of the alcoholic beverage control law.
5 § 21. Subparagraph (C) of paragraph 1 of subdivision (i) of section
6 1136 of the tax law, as amended by chapter 108 of the laws of 2012, is
7 amended to read as follows:
8 (C) Every wholesaler, as defined by section three of the alcoholic
9 beverage control law, if it has made a sale of an alcoholic beverage, as
10 defined by section four hundred twenty of this chapter, without collect-
11 ing sales or use tax during the period covered by the return, except (i)
12 a sale to a person that has furnished an exempt organization certificate
13 to the wholesaler for that sale; or (ii) a sale to another wholesaler
14 whose license under the alcoholic beverage control law does not allow it
15 to make retail sales of the alcoholic beverage. For each vendor, opera-
16 tor, or recipient to whom the wholesaler has made a sale without
17 collecting sales or compensating use tax, the return must include the
18 total value of those sales made during the period covered by the return
19 (excepting the sales described in clauses (i) and (ii) of this subpara-
20 graph) and the vendor's, operator's or recipient's state liquor authori-
21 ty license number, along with the information required by paragraph two
22 of this subdivision. A person operating pursuant to a farm winery
23 license as provided in section seventy-six-a of the alcoholic beverage
24 control law, or a person operating pursuant to a farm distillery license
25 as provided in subdivision two-c of section sixty-one of such law, or a
26 person operating pursuant to a farm cidery license as provided in
27 section fifty-eight-c of the alcoholic beverage control law, or a person
28 operating pursuant to a farm brewery license as provided in section
29 fifty-one-a of the alcoholic beverage control law, or a person operating
30 pursuant to any combination of such licenses, shall not be subject to
31 any of the requirements of this subdivision.
32 § 22. This act shall take effect on the ninetieth day after it shall
33 have become a law.