S T A T E   O F   N E W   Y O R K
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                                   9232
 
                             I N  S E N A T E
 
                                May 7, 2024
                                ___________
 
 Introduced  by  Sen. MAY -- (at request of the Department of Agriculture
   and Markets) -- read twice and ordered printed, and when printed to be
   committed to the Committee on Agriculture
 
 AN ACT to amend the agriculture and markets law, the alcoholic  beverage
   control  law, and the tax law, in relation to crop loss determinations
   for apples used in the production of New York state labeled cider

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraphs (a) and (b) of subdivision 42 of section 16 of
 the agriculture and markets law, paragraph (a) as amended and  paragraph
 (b)  as added by chapter 108 of the laws of 2012, are amended to read as
 follows:
   (a) For purposes of making timely determinations and  consulting  with
 the  chairman of the state liquor authority pursuant to subdivision five
 of section seventy-six-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: (I) the crop
 of grapes or other fruit products used in the production of wine; AND/OR
 (II) THE CROP OF APPLES USED IN THE PRODUCTION OF CIDER.
   (b) For purposes of making timely determinations and  consulting  with
 the chairman of the state liquor authority pursuant to subdivision elev-
 en  of section fifty-one-a of the alcoholic beverage control law, inves-
 tigate and compile information relative to natural  disasters,  acts  of
 God, or continued adverse weather conditions which shall affect: (I) the
 necessary  ingredients  for brewing beer; AND/OR (II) THE CROP OF APPLES
 USED IN THE PRODUCTION OF CIDER.
   § 2. Paragraph (b) of subdivision 12 of section 51-a of the  alcoholic
 beverage  control  law,  as added by chapter 108 of the laws of 2012, is
 amended to read as follows:
   (b) In the event that the commissioner  of  agriculture  and  markets,
 after  investigating  and  compiling information pursuant to subdivision
 forty-two 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] AT LEAST THIRTY PERCENT of the apple crop
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14205-02-4
 S. 9232                             2
 
 necessary for producing cider, such commissioner, in  consultation  with
 the chairman of the authority, may give authorization to a duly licensed
 farm  brewery  to  manufacture  or  sell cider produced from SUCH apples
 DESIGNATED  AS  NECESSARY  FOR  PRODUCING  CIDER  AND grown outside this
 state.  No such authorization shall be granted to a farm brewery  licen-
 see  unless such licensee certifies to such commissioner the quantity of
 SUCH New York grown apples DESIGNATED AS NECESSARY FOR  PRODUCING  CIDER
 unavailable  to  such licensee due to such natural disaster, act of God,
 or continuing adverse weather condition and satisfies such  commissioner
 that  reasonable efforts were made to obtain SUCH apples from a New York
 state source for such  cider  making  purpose.  No  farm  brewery  shall
 utilize  an  amount of out-of-state grown apples exceeding the amount of
 SUCH DESIGNATED New York grown apples that such  brewery  is  unable  to
 obtain  due  to  the  destruction  of New York grown apples 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 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
 cider farm breweries utilize apples grown  in  New  York  state  to  the
 extent  they are reasonably available, prior to utilizing apples from an
 out-of-state source for such purpose.
   § 3. Paragraph (b) of subdivision 11 of section 58-c of the  alcoholic
 beverage  control  law,  as added by chapter 384 of the laws of 2013, is
 amended to read as follows:
   (b) In the event that the commissioner  of  agriculture  and  markets,
 after  investigating  and  compiling information pursuant to subdivision
 forty-two 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] AT LEAST THIRTY PERCENT of the apple crop
 necessary for producing cider, such commissioner, in  consultation  with
 the chairman of the authority, may give authorization to a duly licensed
 farm  cidery  to  manufacture  or  sell  cider produced from SUCH apples
 DESIGNATED AS NECESSARY FOR  PRODUCING  CIDER  AND  grown  outside  this
 state.  No such authorization shall be granted to a farm cidery licensee
 unless such licensee certifies to such commissioner the quantity of SUCH
 New  York  grown  apples  DESIGNATED  AS  NECESSARY  FOR PRODUCING CIDER
 unavailable to such licensee due to such natural disaster, act  of  God,
 or  continuing adverse weather condition and satisfies such commissioner
 that reasonable efforts were made to obtain SUCH apples from a New  York
 state source for such cider making purpose. No farm cidery shall utilize
 an  amount of out-of-state grown apples exceeding the amount of New York
 grown apples that such cidery is unable to obtain due to the destruction
 of New York grown apples by a natural disaster, act of God, or  continu-
 ing adverse weather condition as determined by the commissioner of agri-
 culture  and markets pursuant to this subdivision.  For purposes of this
 subdivision, the department of agriculture and markets and the 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 cider farm cideries utilize apples grown
 in New York state to the extent they are reasonably available, prior  to
 utilizing apples from an out-of-state source for such purpose.
   §  4.  Subdivisions 6, 7, 8, 9, 10 and 11 of section 76-a of the alco-
 holic beverage control law are renumbered subdivisions 7, 8, 9,  10,  11
 and 12 and a new subdivision 6 is added to read as follows:
 S. 9232                             3
 
   6.  (A)  EXCEPT  AS  PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, NO
 LICENSED FARM WINERY SHALL MANUFACTURE OR SELL ANY CIDER OTHER THAN  NEW
 YORK STATE LABELED CIDER.
   (B)  IN  THE  EVENT  THAT THE COMMISSIONER OF AGRICULTURE AND MARKETS,
 AFTER INVESTIGATING AND COMPILING INFORMATION  PURSUANT  TO  SUBDIVISION
 FORTY-TWO  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 AT LEAST THIRTY PERCENT OF THE APPLE CROP NECES-
 SARY  FOR  PRODUCING CIDER, THE COMMISSIONER OF AGRICULTURE AND MARKETS,
 IN CONSULTATION WITH THE CHAIRMAN OF THE AUTHORITY,  MAY  GIVE  AUTHORI-
 ZATION  TO  A  DULY  LICENSED  FARM  WINERY TO MANUFACTURE OR SELL CIDER
 PRODUCED FROM SUCH APPLES DESIGNATED AS NECESSARY  FOR  PRODUCING  CIDER
 AND  GROWN OUTSIDE THIS STATE. NO SUCH AUTHORIZATION SHALL BE GRANTED TO
 A FARM WINERY LICENSEE UNLESS SUCH LICENSEE CERTIFIES TO THE COMMISSION-
 ER OF AGRICULTURE AND MARKETS THE QUANTITY OF SUCH NEW YORK STATE APPLES
 DESIGNATED AS NECESSARY FOR PRODUCING CIDER UNAVAILABLE TO SUCH LICENSEE
 DUE TO SUCH NATURAL DISASTER, ACT OF GOD, OR CONTINUING ADVERSE  WEATHER
 CONDITION AND SATISFIES THE COMMISSIONER OF AGRICULTURE AND MARKETS THAT
 REASONABLE EFFORTS WERE MADE TO OBTAIN SUCH APPLES FROM A NEW YORK STATE
 SOURCE  FOR  SUCH  CIDER MAKING PURPOSE. NO FARM WINERY SHALL UTILIZE AN
 AMOUNT OF OUT-OF-STATE GROWN APPLES EXCEEDING THE AMOUNT OF SUCH  DESIG-
 NATED  NEW YORK GROWN APPLES THAT SUCH CIDERY IS UNABLE TO OBTAIN DUE TO
 THE DESTRUCTION OF NEW YORK GROWN APPLES BY A NATURAL DISASTER,  ACT  OF
 GOD,  OR  CONTINUING  ADVERSE  WEATHER  CONDITION  AS  DETERMINED BY THE
 COMMISSIONER OF AGRICULTURE AND MARKETS PURSUANT  TO  THIS  SUBDIVISION.
 FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE DEPARTMENT OF AGRICULTURE AND
 MARKETS AND THE AUTHORITY ARE AUTHORIZED TO ADOPT RULES AND  REGULATIONS
 AS  THEY MAY DEEM NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SUBDIVI-
 SION WHICH SHALL INCLUDE  ENSURING  THAT  IN  MANUFACTURING  CIDER  FARM
 CIDERIES  UTILIZE  APPLES GROWN IN NEW YORK STATE TO THE EXTENT THEY ARE
 REASONABLY AVAILABLE, PRIOR TO UTILIZING  APPLES  FROM  AN  OUT-OF-STATE
 SOURCE FOR SUCH PURPOSE.
   (C)  THE  COMMISSIONER OF AGRICULTURE AND MARKETS SHALL MAKE AVAILABLE
 TO FARM WINERIES AND TO THE PUBLIC EACH  SPECIFIC  APPLE  LOSS  DETERMI-
 NATION  ISSUED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION ON OR AFTER
 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
 OF EACH YEAR RESULTS IN ANY APPLE CROP 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 AUTHORITY,
 MAY  ISSUE  ADDITIONAL  APPLE  CROP  LOSS DETERMINATIONS AND SHALL EXPE-
 DITIOUSLY MAKE AVAILABLE TO FARM WINERIES AND TO  THE  PUBLIC  THE  LOSS
 DETERMINATION  ISSUED  PURSUANT TO THIS PARAGRAPH PRIOR TO OCTOBER TENTH
 OF EACH YEAR.
   § 5. Subparagraph (D) of paragraph 1 of  subdivision  (i)  of  section
 1136  of  the  tax law, as added by section 3 of part J of chapter 59 of
 the laws of 2020, is amended to read as follows:
   (D) Notwithstanding the provisions of subparagraph (C) of  this  para-
 graph,  a  person  operating  pursuant  to any of the following licenses
 shall not be subject to any of the requirements of this subdivision: (i)
 a farm winery license, as provided in section seventy-six-a of the alco-
 holic beverage control law;  (ii)  a  winery  license,  as  provided  in
 section  seventy-six  of  the  alcoholic beverage control law, where the
 S. 9232                             4
 
 number of gallons of wine, cider and  mead  produced  annually  by  such
 person  does  not  exceed  the  annual  limits on the number of finished
 gallons of wine, cider and mead permitted  to  be  produced  by  a  farm
 winery  under  subdivision  [eight] NINE of section seventy-six-a of the
 alcoholic beverage control law; (iii)  a  farm  distillery  license,  as
 provided  in  subdivision  two-c  of  section sixty-one of the alcoholic
 beverage control law; (iv) a distiller's license, as provided in section
 sixty-one of the alcoholic beverage control law,  where  the  number  of
 gallons  of  liquor produced annually by such person does not exceed the
 annual limits on the  number  of  gallons  of  liquor  permitted  to  be
 produced  by  a farm distillery under paragraph (f) of subdivision two-c
 of section sixty-one of the alcoholic beverage control law; (v)  a  farm
 cidery  license,  as  provided in section fifty-eight-c of the alcoholic
 beverage control law; (vi) a cider producers' license,  as  provided  in
 section  fifty-eight  of  the  alcoholic beverage control law, where the
 number of gallons of cider produced annually by  such  person  does  not
 exceed  the annual limits on the number of gallons of cider permitted to
 be produced by a farm cidery under subdivision  ten  of  section  fifty-
 eight-c  of  the  alcoholic  beverage  control law; (vii) a farm brewery
 license, as provided in section fifty-one-a of  the  alcoholic  beverage
 control law; (viii) a brewer's license, as provided in section fifty-one
 of  the  alcoholic  beverage  control  law, where the number of finished
 barrels of beer, cider and braggot produced annually by such person does
 not exceed the annual number of finished  barrels  of  beer,  cider  and
 braggot permitted to be produced by a farm brewery under subdivision ten
 of  section  fifty-one-a  of  the alcoholic beverage control law; (ix) a
 farm meadery license, as provided in section thirty-one of the alcoholic
 beverage control law; or (x) a mead producers' license, as  provided  in
 section  thirty  of the alcoholic beverage control law, where the number
 of gallons of mead and braggot produced annually by such person does not
 exceed the annual number of finished barrels of mead and braggot permit-
 ted to be produced by a farm meadery under subdivision  ten  of  section
 thirty-one  of  the  alcoholic  beverage  control  law.  Nothing in this
 subparagraph shall  exempt  a  person  operating  pursuant  to  multiple
 licenses  under the alcoholic beverage control law from the requirements
 of subparagraph (C) of this paragraph if such person produces an  amount
 of  any  alcoholic  beverage  in  excess  of the amounts permitted to be
 produced annually by a person who holds only a farm winery, farm cidery,
 farm distillery, farm brewery or farm meadery license for such beverage,
 nor shall this section exempt any person holding a wholesalers'  license
 under  the  alcoholic  beverage  control  law  from  the requirements of
 subparagraph (C) of this paragraph.
   § 6. This act shall take effect immediately.