S T A T E   O F   N E W   Y O R K
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                                  6611

                            I N  S E N A T E

                            February 1, 2016
                               ___________

Introduced  by  Sens.  RITCHIE,  YOUNG,  AKSHAR,  O'MARA, VALESKY -- (at
  request of the Legislative Commission  on  Rural  Resources)  --  read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Commerce, Economic Development and Small Business

AN ACT to amend the economic development law, in relation to  establish-
  ing the New York craft beverage council

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

  Section 1. The economic development law is amended  by  adding  a  new
article 5-F to read as follows:
                               ARTICLE 5-F
                 NEW YORK CRAFT BEVERAGE COUNCIL PROGRAM
SECTION 181-F. SHORT TITLE.
        181-G. DEFINITIONS.
        181-H. GENERAL POWERS AND DUTIES OF THE COMMISSIONER.
        181-I. NEW YORK CRAFT BEVERAGE COUNCIL.
  S  181-F. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "NEW YORK CRAFT BEVERAGE COUNCIL PROGRAM".
  S 181-G. DEFINITIONS. THE FOLLOWING TERMS  SHALL  HAVE  THE  FOLLOWING
MEANINGS FOR THE PURPOSES OF THIS SECTION:
  1. "WINERY" SHALL MEAN A BUSINESS THAT PRODUCES WINE.
  2. "DISTILLERY" SHALL MEAN A BUSINESS THAT PRODUCES SPIRITS.
  3. "MICROBREWERY" SHALL MEAN A BUSINESS THAT PRODUCES CRAFT BREWS.
  4.  "BEER DISTRIBUTOR" SHALL MEAN A BUSINESS THAT SELLS CRAFT BREWS TO
THE PUBLIC AND DELIVERS CRAFT BREWS TO RETAILERS.
  5. "BREW PUB" SHALL MEAN A PUB OR RESTAURANT THAT BREWS  BEER  ON  THE
PREMISES.
  6. "FARM DISTILLERY" SHALL MEAN A DISTILLERY WITH A CLASS D LICENSE.
  S  181-H.  GENERAL  POWERS AND DUTIES OF THE COMMISSIONER. THE COMMIS-
SIONER SHALL DEVELOP AND IMPLEMENT A NEW YORK  CRAFT  BEVERAGE  PROGRAM.
THE  NEW  YORK CRAFT BEVERAGE COUNCIL SHALL DEVELOP A MARKETING STRATEGY
PURSUANT TO THIS PROGRAM THAT SHALL  PROMOTE  NEW  YORK  AS  A  PREMIERE
PRODUCER OF HIGH QUALITY WINES, SPIRITS AND CRAFT BREWS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06397-01-5
              

S. 6611                             2

  S  181-I. NEW YORK CRAFT BEVERAGE COUNCIL. 1. (A) THE COMMISSIONER, IN
ACCORDANCE WITH THIS PROGRAM, SHALL CAUSE TO BE  DEVELOPED  A  NEW  YORK
CRAFT BEVERAGE COUNCIL TO BE TASKED WITH BRANDING, MARKETING AND PROMOT-
ING  FINE  NEW  YORK  STATE WINES, SPIRITS AND CRAFT BEVERAGES.  THE NEW
YORK  CRAFT  BEVERAGE  COUNCIL SHALL BE MANAGED BY AND ITS POWERS, FUNC-
TIONS AND DUTIES SHALL BE EXERCISED THROUGH A BOARD OF DIRECTORS.
  (B) THE INITIAL BOARD OF DIRECTORS SHALL CONSIST OF NINE MEMBERS: FIVE
OF WHICH SHALL BE APPOINTED BY THE  GOVERNOR;  TWO  OF  WHICH  SHALL  BE
APPOINTED  BY  THE  TEMPORARY  PRESIDENT OF THE SENATE; AND TWO OF WHICH
SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY. OF THE NINE  MEMBERS,
ONE SHALL BE AN OFFICER OR OWNER OF A WINERY, ONE SHALL BE AN OFFICER OR
OWNER  OF A DISTILLERY, ONE SHALL BE AN OFFICER OR OWNER OF A MICROBREW-
ERY, ONE SHALL BE AN OFFICER OR OWNER OF A LIQUOR STORE, ONE SHALL BE AN
OFFICER OR OWNER OF A BEER DISTRIBUTOR, ONE SHALL BE AN OFFICER OR OWNER
OF A FARM DISTILLERY, ONE SHALL BE AN OFFICER OR OWNER OF  A  BREW  PUB,
ONE  SHALL BE THE OWNER OR OFFICER OF A RESTAURANT LICENSED TO SELL FINE
NEW YORK WINES, SPIRITS AND CRAFT BREWS,  AND  ONE  SHALL  BE  A  PERSON
FAMILIAR  WITH  THE  ADVERTISING,  PROMOTION AND MARKETING OF COMMERCIAL
PRODUCTS. THE DIRECTORS SO APPOINTED SHALL SERVE A TERM OF THREE  YEARS,
EXCEPT  THAT,  OF  THE DIRECTORS SO APPOINTED BY THE GOVERNOR, TEMPORARY
PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY, THE OWNER OR  OFFI-
CER  OF A DISTILLERY, THE OWNER OR OFFICER OF A BEER DISTRIBUTOR AND THE
OWNER OR OFFICER OF A RESTAURANT SHALL SERVE FOR ONE YEAR, THE OWNER  OR
OFFICER  OF  A  BREWERY,  THE OWNER OR OFFICER OF A LIQUOR STORE AND THE
OWNER OR OFFICER OF A BREW PUB SHALL SERVE FOR TWO YEARS, AND THE  OWNER
OR  OFFICER  OF  A WINERY, THE OWNER OR OFFICER OF A FARM DISTILLERY AND
THE PERSON FAMILIAR WITH ADVERTISING, PROMOTION AND MARKETING OF COMMER-
CIAL PRODUCTS SHALL SERVE FOR THREE YEARS.
  (C) THE CHAIR OF THE URBAN  DEVELOPMENT  CORPORATION  SHALL  SERVE  AS
CHAIR OF THE COUNCIL.
  (D)  MEMBERSHIP  WILL  BE  DEFINED AS MEMBERS IN GOOD STANDING PER THE
BYLAWS OF THE NEW YORK CRAFT BEVERAGE COUNCIL. EACH MEMBER WILL CONTRIB-
UTE ANNUAL DUES TO THE COUNCIL TO BE DETERMINED BY THE BOARD  OF  DIREC-
TORS.
  (E)  THE  EXECUTIVE  DIRECTOR  OF  THE NEW YORK CRAFT BEVERAGE COUNCIL
SHALL HAVE PREVIOUS EXPERIENCE IN MARKETING CRAFT BEVERAGES, EVENT PLAN-
NING AND BRAND MANAGEMENT AND WILL BE APPOINTED BY THE BOARD  OF  DIREC-
TORS,  DECIDED  BY A MAJORITY VOTE. THE EXECUTIVE DIRECTOR WILL SERVE AS
AN "AT WILL" EMPLOYEE AT THE DISCRETION OF THE BOARD OF DIRECTORS.
  (F) IF ANY VACANCY OTHER THAN BY EXPIRATION  OF  TERM  OCCURS  ON  THE
BOARD  AMONGST  THOSE  FIRST  APPOINTED  SUCH VACANCY SHALL BE FILLED BY
APPOINTMENT FOR THE UNEXPIRED TERM BY THE APPOINTING AUTHORITY INITIALLY
APPOINTING SUCH MEMBER. UPON EXPIRATION OF THE INITIAL TERMS, SUCCESSORS
SHALL BE ELECTED BY THE REMAINING MEMBERS OF THE BOARD FOR A THREE  YEAR
TERM;  SUCH  DIRECTORS  SHALL  HAVE  THE  QUALIFICATIONS REQUIRED OF THE
ORIGINAL DIRECTORS.
MEMBERS SHALL CONTINUE AS SUCH UNTIL THEIR  SUCCESSORS  HAVE  BEEN  DULY
ELECTED.
  (G)  MEMBERS  OF  THE  BOARD  OF DIRECTORS SHALL SERVE WITHOUT COMPEN-
SATION, BUT SHALL BE REIMBURSED FOR ACTUAL EXPENSES REASONABLY  INCURRED
IN THE PERFORMANCE OF THEIR DUTIES.
  (H) THE BOARD SHALL MEET FOUR TIMES ANNUALLY AT THE CALL OF THE CHAIR-
MAN  OR  IN  HIS  ABSENCE  THE VICE CHAIRMAN OR ON PETITION OF ANY THREE
MEMBERS.  A MAJORITY OF THE MEMBERS OF THE BOARD THEN  IN  OFFICE  SHALL
CONSTITUTE  A  QUORUM  FOR THE TRANSACTION OF ANY BUSINESS. THE BOARD IS
ENCOURAGED TO CONDUCT ITS MEETINGS IN A MANNER  WHICH  WILL  ENSURE  THE

S. 6611                             3

ACTIVE  PARTICIPATION  OF  ANY  PERSON  HAVING  AN INTEREST IN THE CRAFT
BEVERAGE INDUSTRY.
  (I) THE NEW YORK CRAFT BEVERAGE COUNCIL IS CHARGED WITH CREATING BRAND
RECOGNITION  FOR  FINE NEW YORK WINES, SPIRITS AND CRAFT BREWS. IN DOING
SO THEY SHALL WORK TO MARKET NEW YORK STATE LABELED CRAFT BEVERAGES BOTH
WITHIN AND OUTSIDE OF NEW YORK STATE WITH THE GOAL OF PROMOTING NEW YORK
CRAFT BEVERAGES.
  (J) THE NEW YORK CRAFT BEVERAGE COUNCIL SHALL, BY ONE  YEAR  FOLLOWING
THE  EFFECTIVE  DATE OF THIS ARTICLE, SUBMIT A PRELIMINARY REPORT TO THE
GOVERNOR AND  THE  LEGISLATURE  WITH  AN  ASSESSMENT  OF  MARKETING  AND
PROMOTION STRATEGIES TO IMPLEMENT THIS ARTICLE.
  2.  (A)  (I)  REGIONAL  ADVISORY  BOARDS  SHALL  BE ESTABLISHED, WHOSE
MEMBERS SHALL WORK WITH THE NEW YORK CRAFT BEVERAGE COUNCIL. THERE SHALL
BE FIVE REGIONAL MEMBERS OF THE ADVISORY BOARD FOR  EACH  REGION  ESTAB-
LISHED  PURSUANT  TO  THIS SECTION. FOR EACH REGION, ONE REGIONAL MEMBER
SHALL BE APPOINTED BY  THE  GOVERNOR,  TWO  REGIONAL  MEMBERS  SHALL  BE
APPOINTED  BY  THE  TEMPORARY  PRESIDENT OF THE SENATE, AND TWO REGIONAL
MEMBERS SHALL BE APPOINTED BY THE  SPEAKER  OF  THE  ASSEMBLY.  REGIONAL
ADVISORY  BOARD  MEMBERS  SHALL  HAVE THE QUALIFICATIONS REQUIRED OF THE
BOARD OF DIRECTORS.
  (II) REGIONAL MEMBERS SHALL NOT BE CONSIDERED TO  BE  MEMBERS  OF  THE
COUNCIL  FOR PURPOSES OF PARTICIPATION IN COUNCIL MEETINGS, EXCEPT WHERE
ITEMS RELATING SPECIFICALLY TO THAT MEMBER'S REGION ARE ON THE AGENDA OF
A COUNCIL MEETING.
  (B) FOR THE PURPOSES OF THIS ARTICLE, THERE SHALL BE TEN REGIONS:
  (I) WESTERN NEW YORK, CONSISTING OF ALLEGANY, CATTARAUGUS, CHAUTAUQUA,
ERIE AND NIAGARA COUNTIES;
  (II) FINGER LAKES, CONSISTING OF GENESEE, LIVINGSTON, MONROE, ONTARIO,
ORLEANS, SENECA, WAYNE, WYOMING AND YATES COUNTIES;
  (III) SOUTHERN TIER, CONSISTING OF BROOME,  CHEMUNG,  CHENANGO,  DELA-
WARE, SCHUYLER, STEUBEN , TIOGA AND TOMPKINS COUNTIES;
  (IV)  CENTRAL NEW YORK, CONSISTING OF CAYUGA, CORTLAND, MADISON, ONON-
DAGA AND OSWEGO COUNTIES;
  (V) MOHAWK VALLEY, CONSISTING OF FULTON, HERKIMER, MONTGOMERY, ONEIDA,
OTSEGO AND SCHOHARIE COUNTIES;
  (VI) NORTH COUNTRY, CONSISTING OF CLINTON, ESSEX, FRANKLIN,  HAMILTON,
JEFFERSON, LEWIS AND ST. LAWRENCE COUNTIES;
  (VII)  CAPITAL REGION, CONSISTING OF ALBANY, COLUMBIA, GREENE, SARATO-
GA, SCHENECTADY, RENSSELAER, WARREN AND WASHINGTON COUNTIES;
  (VIII) MID-HUDSON, CONSISTING OF DUTCHESS, ORANGE,  PUTNAM,  ROCKLAND,
SULLIVAN, ULSTER AND WESTCHESTER COUNTIES;
  (IX) NEW YORK CITY, CONSISTING OF BRONX, KINGS, NEW YORK, RICHMOND AND
QUEENS COUNTIES;
  (X) LONG ISLAND, CONSISTING OF NASSAU AND SUFFOLK COUNTIES.
  (C)  REGIONAL ADVISORY BOARD MEMBERS SHALL SERVE WITHOUT COMPENSATION,
AND SHALL HAVE THEIR PRINCIPAL RESIDENCE WITHIN  THE  REGION  FOR  WHICH
THEY  ARE  APPOINTED.  SUCH  REGIONAL ADVISORY BOARD MEMBERS MAY SOLICIT
INPUT FROM STAKEHOLDER INTERESTS WITHIN THEIR REGION, INCLUDING BUT  NOT
LIMITED  TO  LOCAL  GOVERNMENTS,  COMMUNITY  ORGANIZATIONS,  CHAMBERS OF
COMMERCE, BEVERAGE DISTRIBUTORS, WINERIES, DISTILLERIES, MICROBREWERIES,
RESTAURANTS, AND CONSUMERS AND SHALL TRANSMIT TO THE  COUNCIL  A  REPORT
CONTAINING  ANY  RECOMMENDATIONS  SPECIFIC  TO  THEIR REGION ONE HUNDRED
EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION.
  S 2. This act shall take effect immediately.