Bill Text: NY A10128 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to authorizing custom liquor production for a non-licensed individual by farm distilleries; establishes conditions for such production including that such custom liquor shall not be offered for sale.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2018-08-16 - signed chap.193 [A10128 Detail]

Download: New_York-2017-A10128-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          10128
                   IN ASSEMBLY
                                     March 16, 2018
                                       ___________
        Introduced  by  M.  of  A.  SCHIMMINGER -- read once and referred to the
          Committee on Economic Development
        AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
          establishing  a  custom distiller's endorsement for holders of class D
          distiller's licenses
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subdivision  2-c  of section 61 of the alcoholic beverage
     2  control law is amended by adding a new paragraph (i) to read as follows:
     3    (i) A class D distiller's license holder may apply  to  the  authority
     4  for  a  custom  distiller's  endorsement  to  conduct  those  activities
     5  provided for pursuant to section sixty-one-c of this  article.  If  such
     6  endorsement  is granted, those activities authorized pursuant to section
     7  sixty-one-c of this article shall be activities that  may  be  conducted
     8  under the authority and power specified under this subdivision.
     9    §  2.  Subdivision 1 of section 61-a of the alcoholic beverage control
    10  law, as added by chapter 297 of the laws of 2016, is amended to read  as
    11  follows:
    12    1.  The authority may issue a combined craft manufacturer's license to
    13  a person for the purposes of this article and  articles  four,  [four-a,
    14  five] four-A and six of this chapter, combining the privileges of two or
    15  more  farm  or  micro  manufacturing  licenses  and a custom distiller's
    16  endorsement for use at one premises.
    17    § 3. The alcoholic beverage control law is amended  by  adding  a  new
    18  section 61-c to read as follows:
    19    §  61-c. Custom distiller's endorsement; activities permitted. 1.  Any
    20  holder of a class D distiller's license, issued pursuant to  subdivision
    21  two-c  of  section sixty-one of this article, may apply to the authority
    22  for a custom distiller's endorsement as provided for in this section  to
    23  operate  a  custom  distiller's facility, and manufacture liquors to the
    24  order of any person under the authority and power specified in  subdivi-
    25  sion two-c of section sixty-one of this article.  Such application shall
    26  be  in  writing  and verified, and shall contain such information as the
    27  authority shall require. The application shall be accompanied by a check
    28  or draft for the amount required by this subdivision for  such  endorse-
    29  ment.    If  the  authority  grants  the  application, it shall issue an
    30  endorsement in such form as shall be determined by its rules.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14658-04-8
        A. 10128                            2
     1    2. All liquors manufactured under  a  custom  distiller's  endorsement
     2  must qualify as New York state labeled liquor.
     3    3. A custom distiller's endorsement shall authorize the holder thereof
     4  to  operate a facility for the production of liquors under the authority
     5  of a class D distiller's license made to the order of any person.   Such
     6  an endorsement shall also authorize the holder, provided such activities
     7  are  permitted  by  the federal Alcohol and Tobacco Tax and Trade Bureau
     8  for the manufacture of distilled spirits for personal household use, to:
     9    (a) conduct training classes on how to manufacture liquor;
    10    (b) conduct liquor tastings for those  persons  taking  such  classes,
    11  provided  that  such  tastings  shall  be conducted by the holder of the
    12  endorsement or by an official agent of such holder. Such holder or agent
    13  shall be physically present at all times during the conduct of the tast-
    14  ings as provided pursuant to subdivision two-c of section  sixty-one  of
    15  this article;
    16    (c)  rent  space,  equipment and storage facilities and, if necessary,
    17  purchase fruit and grains to manufacture liquor for  personal  household
    18  use  provided that the manufacture and production of liquor for personal
    19  household consumption and use is  done  in  accordance  with  state  and
    20  federal laws and regulations;
    21    (d)  distribute  to persons who have ordered such manufactured liquor.
    22  Such liquor shall only be distributed to or used for (i) personal house-
    23  hold consumption; (ii) gifts to be given to persons, but not for resale;
    24  or (iii) persons residing outside of this state, in accordance with  the
    25  laws of the state or jurisdiction where such person is located; and
    26    (e) permit such persons, who have ordered such manufactured liquor, to
    27  assist  the  class D license holder in the manufacture and processing of
    28  such liquor, so long as such person is under the direct supervision  and
    29  control of personnel employed by such class D license holder.
    30    4.  The  holder  of an endorsement or an official agent of such holder
    31  shall be physically present at all times during the licensed  facility's
    32  hours of operations.
    33    5. The annual aggregate production of liquors for all New York labeled
    34  liquor  at  the  licensed  premises,  pursuant  to  a custom distiller's
    35  endorsement, shall not exceed seventy-five thousand  gallons  of  liquor
    36  annually;  provided  that  such  aggregate production limit shall not be
    37  offset by liquors produced at such  facility  under  a  farm  distillery
    38  license.
    39    6.  Notwithstanding any other provision of this chapter to the contra-
    40  ry, the authority may issue a  custom  distiller's  endorsement  to  the
    41  holder  of a farm distillery license for use at such licensee's existing
    42  licensed premises.
    43    7. The endorsement holder shall maintain a record of the name, address
    44  and contact information of the individuals, corporations and other busi-
    45  ness entities for whom it manufactures liquor and the annual  amount  of
    46  liquor produced for each individual, corporation or other business enti-
    47  ty at the licensed premises pursuant to the rules of the authority.
    48    8. The fee for a custom distiller's endorsement shall be three hundred
    49  dollars for each three year license term.
    50    §  4.  This  act  shall take effect on the sixtieth day after it shall
    51  have become a law; provided, however, that  effective  immediately,  the
    52  addition,  amendment  and/or  repeal of any rule or regulation necessary
    53  for the implementation of this act on its effective date are  authorized
    54  and directed to be made and completed on or before such effective date.