Bill Text: NY S07793 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 1-0)

Status: (Introduced - Dead) 2018-06-19 - SUBSTITUTED BY A10128A [S07793 Detail]

Download: New_York-2017-S07793-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          7793
                    IN SENATE
                                    February 26, 2018
                                       ___________
        Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Commerce, Economic  Devel-
          opment and Small Business
        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-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14658-04-8

        S. 7793                             2
     1  ment.   If the authority grants  the  application,  it  shall  issue  an
     2  endorsement in such form as shall be determined by its rules.
     3    2.  All  liquors  manufactured  under a custom distiller's endorsement
     4  must qualify as New York state labeled liquor.
     5    3. A custom distiller's endorsement shall authorize the holder thereof
     6  to operate a facility for the production of liquors under the  authority
     7  of  a class D distiller's license made to the order of any person.  Such
     8  an endorsement shall also authorize the holder, provided such activities
     9  are permitted by the federal Alcohol and Tobacco Tax  and  Trade  Bureau
    10  for the manufacture of distilled spirits for personal household use, to:
    11    (a) conduct training classes on how to manufacture liquor;
    12    (b)  conduct  liquor  tastings  for those persons taking such classes,
    13  provided that such tastings shall be conducted  by  the  holder  of  the
    14  endorsement or by an official agent of such holder. Such holder or agent
    15  shall be physically present at all times during the conduct of the tast-
    16  ings  as  provided pursuant to subdivision two-c of section sixty-one of
    17  this article;
    18    (c) rent space, equipment and storage facilities  and,  if  necessary,
    19  purchase  fruit  and grains to manufacture liquor for personal household
    20  use provided that the manufacture and production of liquor for  personal
    21  household  consumption  and  use  is  done  in accordance with state and
    22  federal laws and regulations;
    23    (d) distribute to persons who have ordered such  manufactured  liquor.
    24  Such liquor shall only be distributed to or used for (i) personal house-
    25  hold consumption; (ii) gifts to be given to persons, but not for resale;
    26  or  (iii) persons residing outside of this state, in accordance with the
    27  laws of the state or jurisdiction where such person is located; and
    28    (e) permit such persons, who have ordered such manufactured liquor, to
    29  assist the class D license holder in the manufacture and  processing  of
    30  such  liquor, so long as such person is under the direct supervision and
    31  control of personnel employed by such class D license holder.
    32    4. The holder of an endorsement or an official agent  of  such  holder
    33  shall  be physically present at all times during the licensed facility's
    34  hours of operations.
    35    5. The annual aggregate production of liquors for all New York labeled
    36  liquor at the  licensed  premises,  pursuant  to  a  custom  distiller's
    37  endorsement,  shall  not  exceed seventy-five thousand gallons of liquor
    38  annually; provided that such aggregate production  limit  shall  not  be
    39  offset  by  liquors  produced  at  such facility under a farm distillery
    40  license.
    41    6. Notwithstanding any other provision of this chapter to the  contra-
    42  ry,  the  authority  may  issue  a custom distiller's endorsement to the
    43  holder of a farm distillery license for use at such licensee's  existing
    44  licensed premises.
    45    7. The endorsement holder shall maintain a record of the name, address
    46  and contact information of the individuals, corporations and other busi-
    47  ness  entities  for whom it manufactures liquor and the annual amount of
    48  liquor produced for each individual, corporation or other business enti-
    49  ty at the licensed premises pursuant to the rules of the authority.
    50    8. The fee for a custom distiller's endorsement shall be three hundred
    51  dollars for each three year license term.
    52    § 4. This act shall take effect on the sixtieth  day  after  it  shall
    53  have  become  a  law; provided, however, that effective immediately, the
    54  addition, amendment and/or repeal of any rule  or  regulation  necessary
    55  for  the implementation of this act on its effective date are authorized
    56  and directed to be made and completed on or before such effective date.
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