NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1100B
SPONSOR: Magee (MS)
 
TITLE OF BILL: An act to amend the alcoholic beverage control law, in
relation to beer centers, cider centers and incubator wine centers
 
PURPOSE:
The purpose of this bill is to create a regulatory mechanism so that
custom beermakers' centers, custom cidermakers' centers, and custom
vvinemakers' centers (collectively "custom centers") can be established
in this State and facilitate the ability of individuals to share space,
equipment, and storage to produce quality beer, cider, and wine for home
consumption, and not for sale or resale, as is currently allowed for
under federal regulations.
 
SUMMARY OF PROVISIONS:
Section 1: Amends the ABC Law section 3 to add definitions for "custom
beermakers' center", "custom cidermakers' center", and "custom winemak-
ers' center".
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 quan-
tity 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 cider-
makers' center license that authorizes the operation of a custom cider-
makers' 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 train-
ing 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 winemak-
ers' center license that authorizes the operation of a custom winemak-
ers' 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 a 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 appropri-
ate space to make homemade beer, cider, or wine in their homes or apart-
ments 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 facili-
ties. 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 manufac-
turers 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 equip-
ment 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.
STATE OF NEW YORK
________________________________________________________________________
1100--B
2015-2016 Regular Sessions
IN ASSEMBLY
January 8, 2015
___________
Introduced by M. of A. MAGEE, LUPARDO, BARRETT, DiPIETRO -- read once
and referred to the Committee on Agriculture -- reference changed to
the Committee on Economic Development -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- recommitted to the Committee on Economic Development in accord-
ance with Assembly Rule 3, sec. 2 -- reported and referred to the
Committee on Codes -- reported and referred to the Committee on Ways
and Means -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the alcoholic beverage control law, in relation to beer
centers, cider centers and incubator wine centers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3 of the alcoholic beverage control law is amended
2 by adding three new subdivisions 14-a, 14-b and 14-c to read as follows:
3 14-a. "Custom beermakers' center" means a facility that provides one
4 or more individuals with rental space, the use of equipment and storage
5 facilities, and/or beer making supplies to manufacture beer for personal
6 household use and not for resale in accordance with state and federal
7 laws, rules, and regulations.
8 14-b. "Custom cidermakers' center" means a facility that provides one
9 or more individuals with rental space, the use of equipment and storage
10 facilities, and/or fruit to manufacture cider for personal household use
11 and not for resale in accordance with state and federal laws, rules and
12 regulations.
13 14-c. "Custom winemakers' center" means a facility that provides one
14 or more individuals with rental space, the use of equipment and storage
15 facilities, and/or fruit to manufacture wine for personal household use
16 and not for resale in accordance with state and federal laws, rules and
17 regulations.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03804-15-6
A. 1100--B 2
1 § 2. The alcoholic beverage control law is amended by adding a new
2 section 52 to read as follows:
3 § 52. Custom beermakers' center. 1. Any person may apply to the
4 authority on or before December thirty-first, two thousand nineteen for
5 a custom beermakers' center license as provided for in this section to
6 operate a custom beermakers' center facility and provide individuals
7 with rental space, the use of equipment and storage facilities, and/or
8 beer making supplies for the production of beer by such individuals for
9 personal household use and not for resale in accordance with state and
10 federal laws, rules, and regulations authorizing such production. Such
11 application shall be in writing and verified and shall contain such
12 information as the authority shall require, provided, however, the hold-
13 er of a license under this section may renew such license on or after
14 December thirty-first, two thousand nineteen. Such application shall be
15 accompanied by a check or draft for the amount required by this article
16 for such license. If the authority grants the application, it shall
17 issue a license in such form as shall be determined by its rules. Such
18 license shall contain a description of the licensed premises and in form
19 and in substance shall be a license to the person therein specifically
20 designated to operate such center to manufacture beer for personal
21 household use in the premises therein specifically licensed.
22 2. For the purposes of this section, "beer making supplies" shall mean
23 hops, grains, malted grains, wort, sugars, yeasts, water, fruits, fruit
24 juices, and other agricultural products including, but not limited to,
25 honey and flowers, that are grown or produced in the state of New York,
26 in quantity amounts as determined by the authority and shall be governed
27 by paragraph (b) of subdivision eleven of section fifty-one-a of this
28 article.
29 3. A custom beermakers' center license shall authorize the holder
30 thereof to operate a facility for individuals to rent space, equipment,
31 and storage facilities and, if necessary, to purchase beer making
32 supplies to manufacture beer for personal household use provided that
33 the manufacture and production of beer for personal household consump-
34 tion and use is done in accordance with state and federal laws and regu-
35 lations. Such a license shall also authorize the licensee, provided
36 such activities are permitted by the federal Alcohol and Tobacco Tax and
37 Trade Bureau for the manufacture of tax exempt beer for personal house-
38 hold use, to:
39 (a) conduct training classes on how to manufacture beer; and
40 (b) conduct beer tastings for those individuals taking such classes
41 and/or using such facility for brewing purposes at the licensed facility
42 provided that the tastings shall be subject to the following limita-
43 tions:
44 (i) tastings shall be conducted by the licensee or by an official
45 agent of the licensee. Such licensee or agent shall be physically pres-
46 ent at all times during the conduct of the tastings; and
47 (ii) any liability stemming from a right of action resulting from a
48 tasting of beer as authorized herein and in accordance with the
49 provisions of sections 11-100 and 11-101 of the general obligations law,
50 shall accrue to the custom beermakers' center.
51 4. The custom beermakers' center licensee shall be subject to the
52 supervision of the authority to ensure that the licensee and the indi-
53 viduals utilizing such center are in compliance with the provisions of
54 this chapter, state laws, rules, and regulations, and the laws, rules,
55 and regulations of the federal Alcohol and Tobacco Tax and Trade Bureau.
A. 1100--B 3
1 5. The licensee or an official agent of the licensee shall be phys-
2 ically present at all times during the facility's hours of operations.
3 6. The annual aggregate production of beer at any such center for all
4 individuals making beer at such premises, pursuant to a custom beermak-
5 ers' center license, shall not exceed the production limits set by the
6 authority that are commensurate with a non-commercial production facili-
7 ty. Provided that such aggregate production limit shall not be offset by
8 beer produced at such facility under a brewer's license or farm brewery
9 license.
10 7. Notwithstanding any other provision of this chapter, the authority
11 may issue a custom beermakers' center license to the holder of a farm
12 brewery or brewery license for use at such licensee's existing licensed
13 premises.
14 8. The authority is hereby authorized to promulgate rules and regu-
15 lations to effectuate the purposes of this section.
16 9. The licensee must maintain a record of the name, address, and
17 contact information of the individuals that have used such facility and
18 the annual amount of beer produced by each individual at the facility
19 pursuant to the rules of the authority.
20 § 3. Section 56 of the alcoholic beverage control law is amended by
21 adding a new subdivision 11 to read as follows:
22 11. The annual fee for a license to operate a custom beermakers'
23 center shall be three hundred twenty dollars.
24 § 4. Section 56-a of the alcoholic beverage control law, as added by
25 chapter 204 of the laws of 1963, subdivisions 1 and 2 as amended by
26 chapter 384 of the laws of 2013 and subdivision 3 as renumbered by chap-
27 ter 919 of the laws of 1976, is amended to read as follows:
28 § 56-a. Filing fees and refunds. 1. In addition to the annual fees
29 provided for in this chapter, there shall be paid to the authority with
30 each initial application for a license filed pursuant to section fifty-
31 one, fifty-one-a, fifty-two, fifty-three, fifty-eight, fifty-eight-c,
32 fifty-eight-d, sixty-one, sixty-two, seventy-six, seventy-seven or
33 seventy-eight of this chapter, a filing fee of four hundred dollars;
34 with each initial application for a license filed pursuant to section
35 sixty-three, sixty-four, sixty-four-a or sixty-four-b of this chapter, a
36 filing fee of two hundred dollars; with each initial application for a
37 license filed pursuant to section fifty-three-a, fifty-four, fifty-five,
38 fifty-five-a, seventy-nine, eighty-one or eighty-one-a of this chapter,
39 a filing fee of one hundred dollars; with each initial application for a
40 permit filed pursuant to section ninety-one, ninety-one-a, ninety-two,
41 ninety-two-a, ninety-three, ninety-three-a, if such permit is to be
42 issued on a calendar year basis, ninety-four, ninety-five, ninety-six or
43 ninety-six-a, or pursuant to paragraph b, c, e or j of subdivision one
44 of section ninety-nine-b of this chapter if such permit is to be issued
45 on a calendar year basis, or for an additional bar pursuant to subdivi-
46 sion four of section one hundred of this chapter, a filing fee of twenty
47 dollars; and with each application for a permit under section ninety-
48 three-a of this chapter, other than a permit to be issued on a calendar
49 year basis, section ninety-seven, ninety-eight, ninety-nine, or ninety-
50 nine-b of this chapter, other than a permit to be issued pursuant to
51 paragraph b, c, e or j of subdivision one of section ninety-nine-b of
52 this chapter on a calendar year basis, a filing fee of ten dollars.
53 2. In addition to the annual fees provided for in this chapter, there
54 shall be paid to the authority with each renewal application for a
55 license filed pursuant to section fifty-one, fifty-one-a, fifty-two,
56 fifty-three, fifty-eight, fifty-eight-c, fifty-eight-d, sixty-one,
A. 1100--B 4
1 sixty-two, seventy-six, seventy-seven or seventy-eight of this chapter,
2 a filing fee of one hundred dollars; with each renewal application for a
3 license filed pursuant to section sixty-three, sixty-four, sixty-four-a
4 or sixty-four-b of this chapter, a filing fee of ninety dollars; with
5 each renewal application for a license filed pursuant to section seven-
6 ty-nine, eighty-one or eighty-one-a of this chapter, a filing fee of
7 twenty-five dollars; and with each renewal application for a license or
8 permit filed pursuant to section fifty-three-a, fifty-four, fifty-five,
9 fifty-five-a, ninety-one, ninety-one-a, ninety-two, ninety-two-a, nine-
10 ty-three, ninety-three-a, if such permit is issued on a calendar year
11 basis, ninety-four, ninety-five, ninety-six or ninety-six-a of this
12 chapter or pursuant to [subdivisions] paragraph b, c, e or j of subdivi-
13 sion one of section ninety-nine-b, if such permit is issued on a calen-
14 dar year basis, or with each renewal application for an additional bar
15 pursuant to subdivision four of section one hundred of this chapter, a
16 filing fee of thirty dollars.
17 3. If the authority shall deny an application filed pursuant to this
18 chapter it shall return the annual fee to the applicant and retain the
19 filing fee.
20 § 5. The alcoholic beverage control law is amended by adding a new
21 section 58-d to read as follows:
22 § 58-d. Custom cidermakers' center. 1. Any person may apply to the
23 authority on or before December thirty-first, two thousand nineteen for
24 a custom cidermakers' center license as provided for in this section to
25 operate a custom cidermakers' center facility and provide individuals
26 with rental space, the use of equipment and storage facilities, and/or
27 fruit for the production of cider by such individuals for personal
28 household use and not for resale in accordance with state and federal
29 laws, rules, and regulations authorizing such production. Such applica-
30 tion shall be in writing and verified and shall contain such information
31 as the authority shall require, provided, however, the holder of such a
32 license under this section may renew such license on or after December
33 thirty-first, two thousand nineteen. Such application shall be accompa-
34 nied by a check or draft for the amount required by this article for
35 such license. If the authority grants the application, it shall issue a
36 license in such form as shall be determined by its rules. Such license
37 shall contain a description of the licensed premises and in form and in
38 substance shall be a license to the person therein specifically desig-
39 nated to operate such center to manufacture cider for personal household
40 use in the premises therein specifically licensed.
41 2. For the purposes of this section, "fruit" shall mean fresh, whole
42 apples or other pome fruits that are grown or produced in the state of
43 New York.
44 3. A custom cidermakers' center license shall authorize the holder
45 thereof to operate a facility for individuals to rent space, equipment,
46 and storage facilities and, if necessary, to purchase fruit to manufac-
47 ture cider for personal household use provided that the manufacture and
48 production of cider for personal household consumption and use is done
49 in accordance with state and federal laws and regulations. Such a
50 license shall also authorize the licensee, provided such activities are
51 permitted by the federal Alcohol and Tobacco Tax and Trade Bureau for
52 the manufacture of tax exempt cider for personal household use, to:
53 (a) conduct training classes on how to manufacture cider; and
54 (b) conduct cider tastings for those individuals taking such classes
55 and/or using such facility for the production of cider at the licensed
A. 1100--B 5
1 facility provided that the tastings shall be subject to the following
2 limitations:
3 (i) tastings shall be conducted by the licensee or by an official
4 agent of the licensee. Such licensee or agent shall be physically pres-
5 ent at all times during the conduct of the tastings; and
6 (ii) any liability stemming from a right of action resulting from a
7 tasting of cider as authorized herein and in accordance with the
8 provisions of sections 11-100 and 11-101 of the general obligations law,
9 shall accrue to such center.
10 4. The custom cidermakers' center licensee shall be subject to the
11 supervision of the authority to ensure that the licensee and the indi-
12 viduals utilizing such center are in compliance with the provisions of
13 this chapter, state laws, rules, and regulations, and the laws, rules,
14 and regulations of the federal Alcohol and Tobacco Tax and Trade Bureau.
15 5. The licensee or an official agent of the licensee shall be phys-
16 ically present at all times during the facility's hours of operations.
17 6. The annual aggregate production of cider at any such center for all
18 individuals making cider at such premises, pursuant to a custom cider-
19 makers' center license, shall not exceed the production limits set forth
20 by the authority that are commensurate with a non-commercial production
21 facility. Provided that such aggregate production limit shall not be
22 offset by cider produced at such facility under a cidery license or farm
23 cidery license.
24 7. Notwithstanding any other provision of this chapter, the authority
25 may issue a custom cidermakers' center license to the holder of a farm
26 cidery or cidery license or farm winery or winery license for use at
27 such licensee's existing licensed premises.
28 8. The authority is hereby authorized to promulgate rules and regu-
29 lations to effectuate the purposes of this section.
30 9. The licensee must maintain a record of the name, address, and
31 contact information of the individuals that have used such facility and
32 the annual amount of cider produced by each individual at the facility
33 pursuant to the rules of the authority.
34 10. The annual fee for a license to operate a custom cidermakers'
35 center shall be three hundred twenty dollars.
36 § 6. The alcoholic beverage control law is amended by adding a new
37 section 77 to read as follows:
38 § 77. Custom winemakers' center. 1. Any person may apply to the
39 authority on or before December thirty-first, two thousand nineteen for
40 a custom winemakers' center license as provided for in this section to
41 operate a custom winemakers' center facility and provide individuals
42 with rental space, the use of equipment and storage facilities, and/or
43 fruit for the production of wine by such individuals for personal house-
44 hold use and not for resale in accordance with state and federal laws,
45 rules, and regulations authorizing such production. Such application
46 shall be in writing and verified and shall contain such information as
47 the authority shall require, provided, however, the holder of such
48 license under this section may renew such license on or after December
49 thirty-first, two thousand nineteen. Such application shall be accompa-
50 nied by a check or draft for the amount required by this article for
51 such license. If the authority grants the application, it shall issue a
52 license in such form as shall be determined by its rules. Such license
53 shall contain a description of the licensed premises and in form and in
54 substance shall be a license to the person therein specifically desig-
55 nated to operate such center to manufacture wine for personal household
56 use in the premises therein specifically licensed.
A. 1100--B 6
1 2. For the purposes of this section, "fruit" shall mean grapes, other
2 fruits, fruit juices, and other agricultural products including, but not
3 limited to, honey and flowers, that are grown or produced in the state
4 of New York.
5 3. A custom winemakers' center license shall authorize the holder
6 thereof to operate a facility for individuals to rent space, equipment,
7 and storage facilities and, if necessary, to purchase fruit to manufac-
8 ture wine for personal household use provided that the manufacture and
9 production of wine for personal household consumption and use is done in
10 accordance with state and federal laws and regulations. Such a license
11 shall also authorize the licensee, provided such activities are permit-
12 ted by the federal Alcohol and Tobacco Tax and Trade Bureau for the
13 manufacture of tax exempt wine for personal household use, to:
14 (a) conduct training classes on how to manufacture wine; and
15 (b) conduct wine tastings for those individuals taking such classes
16 and/or using such facilities for the production of wine at the licensed
17 facility provided that the tastings shall be subject to the following
18 limitations:
19 (i) tastings shall be conducted by the licensee or by an official
20 agent of the licensee. Such licensee or agent shall be physically pres-
21 ent at all times during the conduct of the tastings; and
22 (ii) any liability stemming from a right of action resulting from a
23 tasting of wine as authorized herein and in accordance with the
24 provisions of sections 11-100 and 11-101 of the general obligations law,
25 shall accrue to such center.
26 4. The custom winemakers' center licensee shall be subject to the
27 supervision of the authority to ensure that the licensee and the indi-
28 viduals utilizing such center are in compliance with the provisions of
29 this chapter, state laws, rules, and regulations, and the laws, rules,
30 and regulations of the federal Alcohol and Tobacco Tax and Trade Bureau.
31 5. The licensee or an official agent of the licensee shall be phys-
32 ically present at all times during the facility's hours of operations.
33 6. The annual aggregate production of wine at any such center for all
34 individuals making wine at such premises, pursuant to a custom winemak-
35 ers' center license, shall not exceed the production limits set forth by
36 the authority that are commensurate with a non-commercial production
37 facility. Provided that such aggregate production limit shall not be
38 offset by wine produced at such facility under a winery's license or
39 farm winery license.
40 7. Notwithstanding any other provision of this chapter, the authority
41 may issue a custom winemakers' center license to the holder of a farm
42 winery or winery license for use at such licensee's existing licensed
43 premises.
44 8. The authority is hereby authorized to promulgate rules and regu-
45 lations to effectuate the purposes of this section.
46 9. The licensee must maintain a record of the name, address, and
47 contact information of the individual or individuals that have used such
48 facility and the annual amount of wine produced by each individual at
49 the facility pursuant to the rules of the authority.
50 § 7. Section 83 of the alcoholic beverage control law is amended by
51 adding a new subdivision 9 to read as follows:
52 9. The annual fee for a license to operate a custom winemakers' center
53 shall be three hundred twenty dollars.
54 § 8. This act shall take effect on the one hundred eightieth day after
55 it shall have become a law.