S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5078

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

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 and the agriculture
  and markets law, in relation to farm breweries

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The alcoholic beverage control law is amended by adding a
new section 51-a to read as follows:
  S 51-A. FARM BREWERY LICENSE. 1. ANY PERSON MAY APPLY  TO  THE  LIQUOR
AUTHORITY  FOR  A  FARM BREWERY LICENSE AS PROVIDED FOR IN THIS SECTION.
SUCH APPLICATION SHALL BE IN WRITING AND VERIFIED AND SHALL CONTAIN SUCH
INFORMATION AS THE LIQUOR  AUTHORITY  SHALL  REQUIRE.  SUCH  APPLICATION
SHALL BE ACCOMPANIED BY A CHECK OR DRAFT FOR THE AMOUNT REQUIRED BY THIS
SECTION FOR SUCH LICENSE. IF THE LIQUOR AUTHORITY SHALL GRANT THE APPLI-
CATION  IT  SHALL ISSUE A LICENSE IN SUCH FORM AS SHALL BE DETERMINED BY
ITS RULES.
  2. (A) A FARM BREWERY LICENSE SHALL AUTHORIZE THE  HOLDER  THEREOF  TO
OPERATE  A  FARM  BREWERY  FOR  THE  MANUFACTURE OF BEER AT THE PREMISES
SPECIFICALLY DESIGNATED IN  THE  LICENSE.  SUCH  A  LICENSE  SHALL  ALSO
AUTHORIZE  THE  SALE IN BULK BY SUCH LICENSEE FROM THE LICENSED PREMISES
OF THE PRODUCTS MANUFACTURED UNDER SUCH LICENSE TO ANY BREWERY LICENSEE,
ANY OTHER FARM BREWERY LICENSEE, ANY DISTILLER LICENSEE OR TO A  PERMIT-
TEE  ENGAGED IN THE MANUFACTURE OF PRODUCTS WHICH ARE UNFIT FOR BEVERAGE
USE AND TO SELL OR DELIVER SUCH BEER TO PERSONS OUTSIDE THE STATE PURSU-
ANT TO THE LAWS OF THE PLACE OF SUCH SALE OR  DELIVERY.  IT  SHALL  ALSO
AUTHORIZE  THE  HOLDER  THEREOF  TO SELL FROM THE LICENSED PREMISES TO A
LICENSED WHOLESALER OR RETAILER, OR TO A CORPORATION OPERATING  RAILROAD
CARS  OR  AIRCRAFT  FOR  CONSUMPTION  ON SUCH CARRIERS, OR AT RETAIL FOR
CONSUMPTION OFF THE PREMISES, BEER MANUFACTURED BY THE LICENSEE AS ABOVE
SET FORTH AND TO SELL OR DELIVER SUCH BEER TO PERSONS OUTSIDE THE  STATE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11133-02-1
              

S. 5078                             2

PURSUANT  TO  THE  LAWS  OF THE PLACE OF SUCH SALE OR DELIVERY. ALL BEER
SOLD BY SUCH LICENSEE FOR CONSUMPTION OFF THE PREMISES SHALL BE SECURELY
SEALED AND HAVE ATTACHED THERETO A LABEL SETTING FORTH SUCH  INFORMATION
AS  SHALL BE REQUIRED BY THIS CHAPTER. SUCH LICENSE SHALL ALSO BE DEEMED
TO INCLUDE AUTHORIZATION TO SELL CIDER AND BEER AT RETAIL  FOR  CONSUMP-
TION  ON OR OFF THE PREMISES; AND TO SELL BEER AT RETAIL FOR CONSUMPTION
ON THE PREMISES OF A RESTAURANT, CONFERENCE CENTER, INN, BED AND  BREAK-
FAST OR HOTEL BUSINESS OWNED AND OPERATED BY THE LICENSEE IN OR ADJACENT
TO  THE  FARM BREWERY FOR WHICH THE LICENSEE IS LICENSED. A LICENSEE WHO
OPERATES A RESTAURANT, CONFERENCE CENTER,  INN,  BED  AND  BREAKFAST  OR
HOTEL  PURSUANT  TO  SUCH  AUTHORITY  SHALL  COMPLY  WITH ALL APPLICABLE
PROVISIONS OF THIS CHAPTER WHICH RELATE TO  LICENSES  TO  SELL  BEER  AT
RETAIL FOR CONSUMPTION ON THE PREMISES.
  (B)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW, ANY FARM BREWERY,
LICENSED PURSUANT TO SUBDIVISION THREE OF THIS SECTION TO SELL  BEER  AT
RETAIL  FOR  CONSUMPTION  ON  THE  PREMISES  IN A RESTAURANT, CONFERENCE
CENTER, INN, BED AND BREAKFAST OR HOTEL BUSINESS OWNED AND  OPERATED  BY
THE  LICENSEE  IN  OR  ADJACENT  TO  SUCH FARM BREWERY, MAY APPLY TO THE
LIQUOR AUTHORITY FOR A LICENSE TO SELL WINE AND/OR LIQUOR AT RETAIL  FOR
CONSUMPTION  ON  THE PREMISES OF SUCH FACILITY. ALL OF THE PROVISIONS OF
THIS CHAPTER RELATIVE TO LICENSES TO SELL BEER, WINE OR LIQUOR AT RETAIL
FOR CONSUMPTION ON THE PREMISES SHALL APPLY SO FAR AS APPLICABLE TO SUCH
APPLICATION.
  3. (A) A FARM BREWERY LICENSE SHALL AUTHORIZE THE  HOLDER  THEREOF  TO
MANUFACTURE,  BOTTLE AND SELL, INCLUDING BUT NOT LIMITED TO, FOOD CONDI-
MENTS AND PRODUCTS SUCH AS MUSTARDS, SAUCES, HOP SEASONINGS, BEER  NUTS,
AND OTHER HOPS AND BEER RELATED FOODS IN ADDITION TO BEER AND HOP SOAPS,
HOP  PILLOWS, HOP WREATHS AND OTHER SUCH FOOD AND CRAFTS ON AND FROM THE
LICENSED PREMISES.
  (B) SUCH LICENSE SHALL AUTHORIZE THE HOLDER THEREOF TO STORE AND  SELL
GIFT  ITEMS  IN A TAX-PAID ROOM UPON THE LICENSED PREMISES INCIDENTAL TO
THE SALE OF BEER. THESE GIFT ITEMS SHALL BE  LIMITED  TO  THE  FOLLOWING
CATEGORIES:
  (I)  NON-ALCOHOLIC  BEVERAGES  FOR  CONSUMPTION  ON  OR  OFF PREMISES,
INCLUDING, BUT NOT LIMITED TO, BOTTLED WATER, JUICE AND SODA BEVERAGES.
  (II) FOOD ITEMS FOR THE PURPOSE OF COMPLEMENTING BEER TASTINGS,  WHICH
SHALL  INCLUDE  A  DIVERSIFIED  SELECTION  OF  FOOD  WHICH IS ORDINARILY
CONSUMED WITHOUT THE USE OF TABLEWARE AND CAN CONVENIENTLY  BE  CONSUMED
WHILE  STANDING  OR  WALKING.  SUCH  FOOD ITEMS SHALL INCLUDE BUT NOT BE
LIMITED TO: CHEESES, FRUITS, VEGETABLES,  CHOCOLATES,  BREADS,  MUSTARDS
AND CRACKERS.
  (III)  FOOD  ITEMS, WHICH SHALL INCLUDE LOCALLY PRODUCED FARM PRODUCTS
AND ANY FOOD OR FOOD PRODUCT NOT  SPECIFICALLY  PREPARED  FOR  IMMEDIATE
CONSUMPTION  UPON  THE PREMISES.  SUCH FOOD ITEMS MAY BE COMBINED INTO A
PACKAGE CONTAINING A BEER AND OR HOP RELATED PRODUCT.
  (IV) BEER SUPPLIES AND  ACCESSORIES,  WHICH  SHALL  INCLUDE  ANY  ITEM
UTILIZED  FOR THE STORAGE, SERVING OR CONSUMPTION OF BEER OR FOR DECORA-
TIVE PURPOSES. THESE SUPPLIES MAY BE SOLD AS  SINGLE  ITEMS  OR  MAY  BE
COMBINED INTO A PACKAGE CONTAINING BEER OR A BEER PRODUCT.
  (V)  SOUVENIR  ITEMS,  WHICH  SHALL  INCLUDE,  BUT  NOT  BE LIMITED TO
ARTWORK, CRAFTS, CLOTHING, AGRICULTURAL PRODUCTS AND ANY OTHER  ARTICLES
WHICH CAN BE CONSTRUED TO PROPAGATE TOURISM WITHIN THE REGION.
  (VI)  NEW  YORK STATE LABELED BEER OR LIQUORS PRODUCED OR MANUFACTURED
BY ANY OTHER NEW YORK STATE BREWERY OR FARM BREWERY LICENSEE OR  BY  THE
HOLDER  OF  A  CLASS  A-1,  B-1,  OR C DISTILLER'S LICENSE. SUCH BEER OR
LIQUORS MAY BE PURCHASED OUTRIGHT BY THE LICENSEE FROM A NEW YORK  BREW-

S. 5078                             3

ERY  OR  FARM  BREWERY  LICENSEE OR THE HOLDER OF A CLASS A-1, B-1, OR C
DISTILLER'S LICENSE OR OBTAINED ON A CONSIGNMENT  BASIS  PURSUANT  TO  A
WRITTEN AGREEMENT BETWEEN THE SELLING AND PURCHASING LICENSEE.
  (VII)  BEER-MAKING  EQUIPMENT  AND SUPPLIES INCLUDING, BUT NOT LIMITED
TO, HOME BEER-MAKING OR HOMEBREWING KITS, FILTERS,  BOTTLING  EQUIPMENT,
HOPS,  BARLEY,  YEASTS, CHEMICALS AND OTHER BEER ADDITIVES, AND BOOKS OR
OTHER WRITTEN MATERIAL TO ASSIST BEER-MAKERS  AND  HOME  BEER-MAKERS  OR
HOMEBREWERS TO PRODUCE AND BOTTLE BEER.
  (C)  THE  AUTHORITY IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGU-
LATIONS TO EFFECTUATE THE PURPOSES OF THIS SUBDIVISION.
  (D) A LICENSED FARM BREWERY MAY ENGAGE IN ANY OTHER  BUSINESS  ON  THE
LICENSED  PREMISES  SUBJECT  TO SUCH RULES AND REGULATIONS AS THE LIQUOR
AUTHORITY MAY PRESCRIBE. IN PRESCRIBING SUCH RULES AND REGULATIONS,  THE
LIQUOR  AUTHORITY  SHALL PROMOTE THE EXPANSION AND PROFITABILITY OF BEER
PRODUCTION AND OF TOURISM IN NEW YORK, THEREBY PROMOTING  THE  CONSERVA-
TION,  PRODUCTION  AND ENHANCEMENT OF NEW YORK STATE AGRICULTURAL LANDS.
FURTHER, SUCH RULES AND REGULATIONS  SHALL  DETERMINE  WHICH  BUSINESSES
WILL  BE  COMPATIBLE  WITH  THE  POLICY AND PURPOSES OF THIS CHAPTER AND
SHALL CONSIDER THE EFFECT OF PARTICULAR BUSINESSES ON THE COMMUNITY  AND
AREA IN THE VICINITY OF THE FARM BREWERY LICENSEE.
  4.  (A)  EXCEPT  AS  PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, NO
LICENSED FARM BREWERY SHALL MANUFACTURE OR SELL ANY BEER  PRODUCED  WITH
LESS  THAN  THE FOLLOWING STATED AMOUNT OF INGREDIENTS GROWN OR PRODUCED
IN NEW YORK STATE TO BE DESIGNATED "NEW YORK STATE LABELED BEER":
  (I) FOR THE FIRST FIVE YEARS THAT A LICENSED FARM BREWERY MANUFACTURES
OR SELLS BEER, SUCH BEER SOLD BY A LICENSED FARM BREWERY SHALL BE  MANU-
FACTURED  WITH  NO  LESS  THAN  TWENTY-FIVE PERCENT OF ITS HOPS GROWN OR
PRODUCED IN NEW YORK STATE AND NO LESS THAN FORTY PERCENT OF ALL OF  ITS
OTHER INGREDIENTS GROWN OR PRODUCED IN NEW YORK STATE;
  (II)  FOR  THE NEXT SUCCEEDING FIVE YEARS THAT A LICENSED FARM BREWERY
MANUFACTURES OR SELLS BEER, SUCH BEER SOLD BY A  LICENSED  FARM  BREWERY
SHALL  BE MANUFACTURED WITH NO LESS THAN SIXTY PERCENT OF ITS HOPS GROWN
OR PRODUCED IN NEW YORK STATE AND NO LESS THAN SEVENTY-FIVE  PERCENT  OF
ALL OF ITS OTHER INGREDIENTS GROWN OR PRODUCED IN NEW YORK STATE; AND
  (III)  FOR ANY FURTHER YEARS THAT A LICENSED FARM BREWERY MANUFACTURES
OR SELLS BEER, SUCH BEER SOLD BY A LICENSED FARM BREWERY SHALL BE  MANU-
FACTURED  WITH NO LESS THAN NINETY PERCENT OF ITS HOPS GROWN OR PRODUCED
IN NEW YORK STATE AND NO LESS THAN NINETY PERCENT OF ALL  OF  ITS  OTHER
INGREDIENTS GROWN OR PRODUCED IN NEW YORK STATE.
  (B)  IN  THE  EVENT  THAT THE COMMISSIONER OF AGRICULTURE AND MARKETS,
AFTER INVESTIGATING AND COMPILING INFORMATION  PURSUANT  TO  SUBDIVISION
FORTY-FIVE OF SECTION SIXTEEN OF THE AGRICULTURE AND MARKETS LAW, DETER-
MINES  THAT A NATURAL DISASTER, ACT OF GOD, OR CONTINUED ADVERSE WEATHER
CONDITION HAS DESTROYED MUCH OF THE NECESSARY  INGREDIENTS  FOR  BREWING
BEER,  THE  COMMISSIONER, IN CONSULTATION WITH THE CHAIRMAN OF THE STATE
LIQUOR AUTHORITY, MAY GIVE AUTHORIZATION TO A DULY LICENSED FARM BREWERY
TO MANUFACTURE OR SELL BEER PRODUCED FROM INGREDIENTS GROWN OR  PRODUCED
OUTSIDE  THIS  STATE.  NO  SUCH AUTHORIZATION SHALL BE GRANTED TO A FARM
BREWERY LICENSEE UNLESS SUCH LICENSEE CERTIFIES TO THE COMMISSIONER  THE
QUANTITY  OF NEW YORK GROWN INGREDIENTS UNAVAILABLE TO SUCH LICENSEE DUE
TO SUCH NATURAL DISASTER, ACT  OF  GOD  OR  CONTINUING  ADVERSE  WEATHER
CONDITION  AND  SATISFIES  THE COMMISSIONER THAT REASONABLE EFFORTS WERE
MADE TO OBTAIN BREWING INGREDIENTS FROM A NEW YORK STATE SOURCE FOR SUCH
BEER MAKING PURPOSE. NO FARM BREWERY SHALL UTILIZE AN AMOUNT OF  OUT-OF-
STATE  GROWN  OR  PRODUCED  INGREDIENTS EXCEEDING THE AMOUNT OF NEW YORK
GROWN INGREDIENTS THAT SUCH BREWERY IS  UNABLE  TO  OBTAIN  DUE  TO  THE

S. 5078                             4

DESTRUCTION  OF  NEW  YORK  GROWN  OR  PRODUCED INGREDIENTS BY A NATURAL
DISASTER, ACT OF GOD OR CONTINUING ADVERSE WEATHER CONDITION  AS  DETER-
MINED  BY  THE  COMMISSIONER OF AGRICULTURE AND MARKETS PURSUANT TO THIS
SUBDIVISION.  FOR  PURPOSES OF THIS SUBDIVISION, THE DEPARTMENT OF AGRI-
CULTURE AND MARKETS AND THE STATE LIQUOR  AUTHORITY  ARE  AUTHORIZED  TO
ADOPT  RULES AND REGULATIONS AS THEY MAY DEEM NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS SUBDIVISION WHICH  SHALL  INCLUDE  ENSURING  THAT  IN
MANUFACTURING  BEER FARM BREWERIES UTILIZE INGREDIENTS GROWN OR PRODUCED
IN NEW YORK STATE TO THE EXTENT THEY ARE REASONABLY AVAILABLE, PRIOR  TO
UTILIZING INGREDIENTS FROM AN OUT-OF-STATE SOURCE FOR SUCH PURPOSE.
  (C)  THE  COMMISSIONER OF AGRICULTURE AND MARKETS SHALL MAKE AVAILABLE
TO FARM BREWERIES AND TO THE PUBLIC EACH SPECIFIC INGREDIENT LOSS DETER-
MINATION ISSUED PURSUANT TO PARAGRAPH (B)  OF  THIS  SUBDIVISION  ON  OR
BEFORE AUGUST TWENTIETH OF EACH YEAR.
  (D)  IN  THE  EVENT THAT THE CONTINUING EFFECTS OF A NATURAL DISASTER,
ACT OF GOD, OR ADVERSE WEATHER CONDITION WHICH OCCURRED PRIOR TO  AUGUST
TWENTIETH OF EACH YEAR OR THE EFFECTS OF A NATURAL DISASTER, ACT OF GOD,
OR ADVERSE WEATHER CONDITION WHICH OCCURS SUBSEQUENT TO AUGUST TWENTIETH
EACH  YEAR  RESULTS  IN  ANY  INGREDIENT  LOSS WHICH MEETS THE STANDARDS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, THE COMMISSIONER OF AGRI-
CULTURE AND MARKETS, IN CONSULTATION WITH  THE  CHAIRMAN  OF  THE  STATE
LIQUOR  AUTHORITY,  MAY  ISSUE ADDITIONAL INGREDIENT LOSS DETERMINATIONS
AND SHALL EXPEDITIOUSLY MAKE AVAILABLE TO  FARM  BREWERIES  AND  TO  THE
PUBLIC  EACH  SPECIFIC  INGREDIENT LOSS DETERMINATION ISSUED PURSUANT TO
THIS PARAGRAPH PRIOR TO OCTOBER TENTH OF EACH YEAR.
  5. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, A FARM BREWERY
LICENSE SHALL AUTHORIZE THE HOLDER THEREOF TO:
  (A) OFFER FOR SALE OR SOLICIT ANY ORDER IN THE STATE FOR THE  SALE  OF
ANY  NEW  YORK  STATE  LABELED  BEER MANUFACTURED BY THE LICENSEE OR ANY
OTHER BREWERY OR FARM BREWERY LICENSED PURSUANT TO THIS ARTICLE.
  (B) ENGAGE AS A BROKER IN THE PURCHASE AND  SALE  OF  NEW  YORK  STATE
LABELED BEERS FOR A FEE OR COMMISSION FOR OR ON BEHALF OF ANY BREWERY OR
FARM BREWERY LICENSED PURSUANT TO THIS ARTICLE.
  (C)   MAINTAIN  A  WAREHOUSE  ON  THE  PREMISES  PURSUANT  TO  SECTION
NINETY-SIX OF THIS CHAPTER FOR THE WAREHOUSING OF  ANY  NEW  YORK  STATE
LABELED  BEERS  MANUFACTURED  BY  ANY  BREWERY  OR FARM BREWERY LICENSED
PURSUANT TO THIS ARTICLE. ANY BREWERY OR  FARM  BREWERY  THAT  MAINTAINS
SUCH  A  WAREHOUSE MUST COMPLY WITH THE PROVISIONS OF SECTION NINETY-SIX
OF THIS CHAPTER.
  (D) DELIVER OR TRANSPORT ANY NEW YORK STATE LABELED BEER  MANUFACTURED
OR  PRODUCED  BY  THE  LICENSEE  OR  ANY  OTHER  BREWERY OR FARM BREWERY
LICENSED PURSUANT TO THIS ARTICLE IN ANY VEHICLE OWNED, LEASED OR  HIRED
BY  THE  LICENSEE.  THE  NEW  YORK  STATE LABELED BEER CAN BE DELIVERED,
TRANSPORTED OR SOLD BY THE LICENSEE TO ANY HOLDER OF: (I) A  BREWERY  OR
FARM  BREWERY  LICENSE,  (II)  A LICENSE TO SELL ALCOHOLIC BEVERAGES FOR
CONSUMPTION ON THE PREMISES, (III) A LICENSE TO SELL ALCOHOLIC BEVERAGES
FOR CONSUMPTION OFF THE PREMISES, (IV) OR ANY PERSON THAT CAN RECEIVE OR
PURCHASE BEER FROM A FARM BREWERY.  THE  LICENSEE  IS  NOT  REQUIRED  TO
OBTAIN  FROM  THE  LIQUOR  AUTHORITY  A  TRUCKING PERMIT OR PAY ANY FEES
PURSUANT TO SECTION NINETY-FOUR OF THIS CHAPTER.
  (E) SELL FOR CONSUMPTION OFF  THE  PREMISES  NEW  YORK  STATE  LABELED
LIQUORS MANUFACTURED BY THE HOLDER OF A CLASS A-1, B-1, OR C DISTILLER'S
LICENSE.
  (F) CONDUCT TASTINGS OF NEW YORK STATE LABELED LIQUORS MANUFACTURED BY
THE  HOLDER  OF  A  CLASS A-1, B-1, OR C DISTILLER'S LICENSE. ALL LIQUOR
TASTINGS CONDUCTED PURSUANT TO THIS PARAGRAPH SHALL BE CONDUCTED IN  THE

S. 5078                             5

SAME  MANNER  AS  TASTINGS  OF BRANDY PURSUANT TO SECTION FIFTY-ONE-B OF
THIS ARTICLE.
  6.  NO  LICENSED  FARM  BREWERY SHALL MANUFACTURE IN EXCESS OF FIFTEEN
THOUSAND FINISHED BARRELS OF BEER ANNUALLY.
  S 2. Section 3 of the alcoholic beverage control  law  is  amended  by
adding a new subdivision 4-a to read as follows:
  4-A.  "FARM  BREWERY" OR "FARM BREWER" MEANS AND INCLUDES ANY PLACE OR
PREMISES, LOCATED ON A FARM IN NEW YORK STATE, IN WHICH BEER IS MANUFAC-
TURED AND SOLD.
  S 3. Section 16 of the agriculture  and  markets  law  is  amended  by
adding a new subdivision 45 to read as follows:
  45.  FOR  PURPOSES OF MAKING TIMELY DETERMINATIONS AND CONSULTING WITH
THE CHAIRMAN OF THE STATE LIQUOR AUTHORITY PURSUANT TO SUBDIVISION  FOUR
OF  SECTION  FIFTY-ONE-A OF THE ALCOHOLIC BEVERAGE CONTROL LAW, INVESTI-
GATE AND COMPILE INFORMATION RELATIVE TO NATURAL DISASTERS, ACTS OF GOD,
OR CONTINUED ADVERSE WEATHER CONDITIONS WHICH SHALL AFFECT THE  CROP  OF
PRODUCTS AND INGREDIENTS USED IN THE PRODUCTION OF BEER.
  S  4.  The  alcoholic  beverage control law is amended by adding a new
section 51-b to read as follows:
  S 51-B. SPECIAL PROVISIONS RELATING TO BREWERIES  AND  FARM  BREWERIES
HOLDING A DISTILLER'S LICENSE. 1. ANY PERSON WHO HOLDS A BREWERY LICENSE
PURSUANT  TO SECTION FIFTY-ONE OF THIS ARTICLE OR A FARM BREWERY LICENSE
PURSUANT TO SECTION FIFTY-ONE-A OF THIS ARTICLE AND, IN ADDITION TO SUCH
LICENSE, HOLDS A DISTILLER'S LICENSE PURSUANT TO  SECTION  SIXTY-ONE  OF
THIS  CHAPTER, AND WHO CONDUCTS BEER TASTINGS PURSUANT TO THE PROVISIONS
OF SUCH SECTIONS FIFTY-ONE AND FIFTY-ONE-A OF  THIS  ARTICLE,  SHALL  BE
AUTHORIZED  TO  CONDUCT TASTINGS OF BRANDY MANUFACTURED BY SUCH LICENSED
BREWERY OR LICENSED FARM BREWERY, AT SUCH BEER TASTINGS.
  2. ALL CONSUMER TASTINGS OF BRANDY SHALL BE CONDUCTED SUBJECT  TO  THE
FOLLOWING LIMITATIONS:
  (A)  TASTINGS OF BRANDY SHALL BE CONDUCTED BY AN OFFICIAL AGENT OF ONE
OR MORE PERSONS LICENSED PURSUANT TO SECTION SIXTY-ONE OF THIS  CHAPTER.
SUCH  AGENT  SHALL  BE PHYSICALLY PRESENT UPON THE PREMISES AT ALL TIMES
DURING THE CONDUCTING OF THE CONSUMER TASTING OF BRANDY.
  (B) NO SUCH PERSON OR PERSONS LICENSED PURSUANT TO  SECTION  SIXTY-ONE
OF THIS CHAPTER, AND NO OFFICIAL AGENT THEREOF, MAY PROVIDE, DIRECTLY OR
INDIRECTLY: (I) MORE THAN A TOTAL OF THREE SAMPLES OF BRANDY FOR TASTING
TO  A PERSON IN ONE CALENDAR DAY; OR (II) A SAMPLE OF BRANDY FOR TASTING
EQUAL TO MORE THAN ONE-QUARTER FLUID OUNCE.
  (C) ANY LIABILITY STEMMING FROM A RIGHT OF  ACTION  RESULTING  FROM  A
CONSUMER  TASTING OF BRANDY AUTHORIZED BY THIS SECTION AND IN ACCORDANCE
WITH THE PROVISIONS OF SECTIONS 11-100 AND 11-101 OF THE  GENERAL  OBLI-
GATIONS  LAW,  SHALL  ACCRUE TO THE PERSONS LICENSED PURSUANT TO SECTION
SIXTY-ONE OF THIS CHAPTER, WHO CONDUCTED SUCH TASTING.
  3. THE STATE LIQUOR AUTHORITY SHALL PROMULGATE RULES  AND  REGULATIONS
REGARDING BRANDY TASTINGS AS PROVIDED FOR IN THIS SECTION.
  4.  ANY  PERSON  WHO  HOLDS  A  BREWERY  LICENSE  PURSUANT  TO SECTION
FIFTY-ONE OF THIS ARTICLE OR A FARM BREWERY LICENSE PURSUANT TO  SECTION
FIFTY-ONE-A  OF  THIS  ARTICLE,  AND  WHO IS AUTHORIZED TO SELL BEER FOR
CONSUMPTION OFF THE PREMISES PURSUANT TO THE PROVISIONS OF SUCH SECTIONS
FIFTY-ONE AND FIFTY-ONE-A OF THIS ARTICLE, SHALL BE AUTHORIZED  TO  SELL
BRANDY  MANUFACTURED  BY  SUCH LICENSED BREWERY OR LICENSED FARM BREWERY
FOR CONSUMPTION OFF THE PREMISES. SUCH SALE OF  BRANDY  FOR  CONSUMPTION
OFF  THE PREMISES SHALL ONLY OCCUR AT THE LICENSED BREWERY OR FARM BREW-
ERY AND NOT AT ANY OTHER OFF-PREMISES LOCATIONS LICENSED TO THE  BREWERY
OR  FARM  BREWERY,  PURSUANT TO SUBDIVISION NINE OF SECTION FIFTY-ONE OF

S. 5078                             6

THIS ARTICLE. THE SALE OF BRANDY AT A BREWERY OR FARM BREWERY SHALL ALSO
BE SUBJECTED TO THE SAME HOURS OF OPERATION AS SET FORTH FOR THE SALE OF
BEER AT A BREWERY OR FARM BREWERY. THE AUTHORITY SHALL PROMULGATE  RULES
AND  REGULATIONS  FOR  THE SALE OF BRANDY AT BREWERIES OR FARM BREWERIES
FOR OFF-PREMISES CONSUMPTION.
  S 5. Section 51 of the alcoholic beverage control law  is  amended  by
adding a new subdivision 9 to read as follows:
  9.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS CHAPTER, ANY ONE OR
MORE FARM BREWERY LICENSEES, SINGLY OR JOINTLY, MAY APPLY TO THE  LIQUOR
AUTHORITY  FOR A LICENSE OR LICENSES TO SELL BEER AT RETAIL FOR CONSUMP-
TION OFF THE PREMISES. THE DURATION OF SUCH LICENSE SHALL BE COEXTENSIVE
WITH THE DURATION OF SUCH LICENSEE'S FARM BREWERY LICENSE, AND  THE  FEE
THEREFOR  SHALL  BE  FIVE  HUNDRED  DOLLARS  IF  SUCH RETAIL PREMISES IS
LOCATED IN CITIES HAVING A POPULATION OF ONE MILLION OR MORE; IN  CITIES
HAVING  LESS THAN ONE MILLION POPULATION AND MORE THAN ONE HUNDRED THOU-
SAND, TWO HUNDRED FIFTY DOLLARS; AND ELSEWHERE, THE SUM OF  ONE  HUNDRED
TWENTY-FIVE  DOLLARS.  SUCH  LICENSE SHALL ENTITLE THE HOLDER THEREOF TO
SELL AT RETAIL FOR CONSUMPTION OFF  THE  PREMISES  ANY  NEW  YORK  STATE
LABELED  BEER.  SUCH  LICENSE  SHALL  ALSO ENTITLE THE HOLDER THEREOF TO
CONDUCT BEER TASTINGS AND ENGAGE IN ANY OF THE ACTIVITIES AUTHORIZED  BY
PARAGRAPHS  (A)  AND  (B) OF SUBDIVISION THREE OF SECTION FIFTY-ONE-A OF
THIS ARTICLE ON SUCH LICENSED PREMISES. SUCH LICENSE SHALL ALSO  AUTHOR-
IZE  THE  SALE  BY THE HOLDER THEREOF OF NEW YORK STATE LABELED BEER, IN
SEALED CONTAINERS  FOR  OFF-PREMISES  CONSUMPTION,  FROM  THE  SPECIALLY
LICENSED PREMISES OF ANY PERSON LICENSED PURSUANT TO SECTION FIFTY-ONE-A
OF  THIS  ARTICLE  TO SELL BEER AT RETAIL FOR CONSUMPTION ON PREMISES IN
WHICH THE PRINCIPAL BUSINESS IS THE OPERATION OF A LEGITIMATE THEATER OR
SUCH OTHER LAWFUL ADULT ENTERTAINMENT OR RECREATIONAL  FACILITY  AS  THE
LIQUOR  AUTHORITY  MAY  CLASSIFY FOR ELIGIBILITY PURSUANT TO SUBDIVISION
SIX OF SECTION SIXTY-FOUR-A OF THIS CHAPTER. NOT  MORE  THAN  FIVE  SUCH
LICENSES  SHALL  BE  ISSUED  TO  ANY  LICENSED  FARM  BREWERY. ALL OTHER
PROVISIONS OF THIS CHAPTER RELATIVE TO LICENSES TO SELL BEER  AT  RETAIL
FOR  CONSUMPTION  OFF  THE  PREMISES SHALL APPLY SO FAR AS APPLICABLE TO
SUCH APPLICATION. THE LIQUOR AUTHORITY IS  HEREBY  AUTHORIZED  TO  ADOPT
SUCH  RULES  AS  IT  MAY DEEM NECESSARY TO CARRY OUT THE PURPOSE OF THIS
SUBDIVISION, PROVIDED THAT ALL LICENSES ISSUED PURSUANT TO THIS SUBDIVI-
SION SHALL BE SUBJECT TO THE SAME RULES AND REGULATIONS AS ARE  APPLICA-
BLE  TO  THE  SALE OF BEER AT RETAIL FOR CONSUMPTION OFF THE PREMISES OF
THE FARM BREWERY LICENSEE.
  S 6. Section 56 of the alcoholic beverage control law  is  amended  by
adding a new subdivision 1-a to read as follows:
  1-A.  THE ANNUAL FEE FOR A FARM BREWERY LICENSE SHALL BE THREE HUNDRED
TWENTY DOLLARS.
  S 7. This act shall take effect on the one hundred eightieth day after
it shall have become a law, provided, however, that effective immediate-
ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
necessary  for  the  implementation of this act on its effective date is
authorized to be made and completed on or before such date.