§ 61. Distiller's licenses. 1. A class A distiller's license shall
authorize the holder thereof to operate a distillery for the manufacture
of liquors by distillation or redistillation 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 person holding a
distiller's class A license, a distiller's class B license or a
permittee engaged in the manufacture of products which are unfit for
beverage use. It shall also authorize the sale from the licensed
premises and from one other location in the state of New York of any
liquor whether or not manufactured by such licensee to a wholesale or
retail liquor licensee or permittee in sealed containers of not more
than one quart each. Such license shall also authorize the sale of New
York state labelled liquor to licensed farm wineries, farm cideries,
farm distilleries and farm breweries in sealed containers of not more
than one quart each. Such license shall also include the privilege to
operate a rectifying plant under the same terms and conditions as the
holder of a class B distiller's license without the payment of any
additional fee.

1-a. A class A-1 distiller's license shall authorize the holder
thereof to operate a distillery which has a production capacity of no
more than seventy-five thousand gallons per year for the manufacture of
liquors by distillation or redistillation 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 person holding a winery license,
farm winery license, distiller's class A license, a distiller's class B
license or a permittee engaged in the manufacture of products which are
unfit for beverage use. It shall also authorize the sale from the
licensed premises and from one other location in the state of New York
of liquors manufactured by such licensee to a wholesale or retail liquor
licensee or permittee in sealed containers of not more than one quart
each. In addition, it shall authorize such licensee to sell from the
licensed premises New York state labelled liquors to licensed farm
wineries, farm breweries, farm distilleries and farm cideries in sealed
containers of not more than one quart for retail sale for off-premises
consumption. Such license shall also include the privilege to operate a
rectifying plant under the same terms and conditions as the holder of a
class B-1 distiller's license without the payment of any additional fee.

2. A class B distiller's license shall authorize the holder thereof to
operate a rectifying plant for the manufacture of the products of
rectification by purifying or combining alcohol, spirits, wine or beer
and the manufacture of gin and cordials by the redistillation of alcohol
or spirits over or with any materials. Such a license shall also
authorize the holder thereof to blend, reduce proof and bottle on his
licensed premises or in a United States customs bonded warehouse for
which a warehouse permit has been issued under this chapter for
wholesale liquor licensees or for persons authorized to sell liquor at
wholesale pursuant to the laws and regulation of any other state,
territorial possession of the United States or foreign country liquor
received in bulk by such wholesalers from other states, territorial
possessions of the United States or a foreign country, and to rebottle
or recondition for wholesale liquor or wine licensees or for persons
authorized to sell liquor or wine at wholesale pursuant to the laws and
regulations of any other state, territorial possession of the United
States or foreign country, liquor or wine manufactured outside the
state, which was purchased and received by such wholesalers in sealed
containers not exceeding one quart each of liquor or fifteen gallons
each of wine. Such a license shall also authorize the sale from the
licensed premises of the products manufactured by such licensee to a
wholesale or retail licensee in sealed containers of not more than one
quart each.

2-a. A class C distiller's license shall authorize the holder thereof
to operate a distillery for the manufacture only of fruit brandy and the
sale of such product by such licensee to a wholesale or retail licensee
in sealed containers of not more than one quart each. Such a license
shall also authorize the sale in bulk of fruit brandy to a winery
licensee, to a farm winery licensee, to the holder of a class B
distiller's license or to a permittee engaged in the manufacture of
products which are unfit for beverage use. It shall also authorize the
sale from the licensed premises and from one other location in the state
of any fruit brandy whether or not manufactured by such licensee to a
wholesale or retail liquor licensee or permittee in sealed containers of
not more than one quart each. In addition, it shall authorize such
licensee to sell from the licensed premises New York state labelled
liquors to a farm winery licensee in sealed containers of not more than
one quart for retail sale for off-premises consumption.

2-b. A class B-1 distiller's license shall authorize the holder
thereof to operate a rectifying plant which has a production capacity of
no more than seventy-five thousand gallons per year for the manufacture
of the products of rectification by purifying or combining alcohol,
spirits, wine, or beer and the manufacture of cordials by the
redistillation of alcohol or spirits over or with any materials. Such a
license shall also authorize the holder thereof to blend, reduce proof
and bottle on his licensed premises or in a United States customs bonded
warehouse for which a warehouse permit has been issued under this
chapter for wholesale liquor licensees or for persons authorized to sell
liquor at wholesale pursuant to the laws and regulation of any other
state, territorial possession of the United States or foreign country
liquor received in bulk by such wholesalers from other states,
territorial possessions of the United States or a foreign country, and
to rebottle or recondition for wholesale liquor or wine licensees or for
persons authorized to sell liquor or wine at wholesale pursuant to the
laws and regulations of any other state, territorial possession of the
United States or foreign country, liquor or wine manufactured outside
the state, which was purchased and received by such wholesalers in
sealed containers not exceeding one quart each of liquor or fifteen
gallons each of wine. Such a license shall also authorize the sale from
the licensed premises of the products manufactured by such licensee to a
wholesale or retail licensee in sealed containers of not more than one
quart each. In addition, it shall authorize such licensee to sell from
the licensed premises New York state labelled liquors to a farm winery
licensee in sealed containers of not more than one quart for retail sale
for off-premises consumption.

2-c. (a) A class D distiller's license, otherwise known as a farm
distillery license, shall authorize the holder of such a license to
operate a farm distillery at the premises specifically designated in the
license:

(i) To manufacture liquor primarily from farm and food products, as
defined in subdivision two of section two hundred eighty-two of the
agriculture and markets law;

(ii) To put such liquor into containers of not more than one quart
each, which containers shall then be sealed and to sell such liquor at
wholesale, for resale, and to licensed farm wineries, farm cideries,
farm breweries and other farm distilleries, wholesale and retail
licensees, and permittees;

(iii) To sell at retail, for personal use, in such sealed containers;

(iv) To sell in bulk, liquor manufactured by the licensee to a winery
or farm winery licensee, or to the holder of a class A, A-1, B, B-1 or C
distiller's license, or to the holder of a permit issued pursuant to
paragraph c of subdivision one of section ninety-nine-b of this chapter;

(v) To conduct tastings of and sell at retail for consumption on or
off the premises New York state labelled beer manufactured by a licensed
brewer or licensed farm brewery;

(vi) To conduct tastings of and sell at retail for consumption on or
off the premises New York state labelled cider manufactured by a
licensed brewer, licensed farm brewery, licensed farm winery, licensed
cider producer or licensed farm cidery;

(vii) To conduct tastings of and sell at retail for consumption on or
off the premises New York state labelled wine manufactured by a licensed
winery or licensed farm winery;

(viii) To conduct tastings of and sell at retail for consumption on or
off the premises New York state labelled mead manufactured by a person
licensed to produce mead under this chapter; and

(ix) To conduct tastings of and sell at retail for consumption on or
off the premises New York state labelled braggot manufactured by a
person licensed to produce braggot under this chapter.

(b)(i) Retail sales by a licensed farm distillery may be made only to
customers who are physically present upon the licensed premises and such
sale shall be concluded by the customer's taking, with him or her, of
the sealed containers purchased by the customer at the time the customer
leaves the licensed premises except as provided for in subparagraph (iv)
of this paragraph;

(ii) Such retail sales shall not be made where the order is placed by
letter, telephone, fax or e-mail, or where the customer otherwise does
not place the order while the customer is physically present upon the
premises of the licensed premises except as provided for in subparagraph
(iv) of this paragraph;

(iii) Such retail sales shall not be made where the contemplated sale
requires the licensee to transport or ship by common carrier, sealed
containers of liquor to a customer;

(iv) A licensed farm distillery may apply to the liquor authority for
a permit to sell liquor in a sealed container for off-premises
consumption at the state fair, at recognized county fairs and at
farmers' markets operated on a not-for-profit basis. As a condition of
the permit a representative from the distillery must be present at the
time of sale.

(c) A licensed farm distillery may conduct upon the licensed premises,
or at approved locations as permitted in subdivision six of this
section, consumer tastings of liquor manufactured by the licensee and
from no more than three other class A, A-1, B, B-1, C or D distilleries,
subject to the following limitations:

(i) Only liquor manufactured primarily from farm and food products, as
defined in subdivision two of section two hundred eighty-two of the
agriculture and markets law, shall be used in the tastings;

(ii) An official agent, servant or employee of the licensee shall be
physically present at all times during the conduct of the consumer
tasting of liquor;

(iii) No consumer may be provided, directly or indirectly: (A) more
than three samples of liquor for tasting in one calendar day; or (B)
with a sample of liquor for tasting equal to more than one-quarter fluid
ounce;

(iv) Any liability stemming from a right of action resulting from a
consumer tasting of liquor authorized by this paragraph and in
accordance with the provisions of sections 11-100 and 11-101 of the
general obligations law, shall accrue to the licensee.

(d) Notwithstanding any other provision of this chapter, the authority
may issue a farm distillery license to the holder of a class A, A-1, B,
B-1 or C distiller's license, a winery license or a farm winery license
for use at such licensee's existing licensed premises. For the purposes
of this chapter, the premises of the class A, A-1, B, B-1 or C
distillery, winery or farm winery shall be considered the premises of
the farm distillery. The holder of a farm distillery license that
simultaneously holds a winery, farm winery or any class of a distiller's
license on the same premises may share and use the same tasting room
facilities to conduct wine and liquor tastings that such licensee is
otherwise authorized to conduct.

(e) Notwithstanding any other provision of law to the contrary, the
holder of a farm distillery license may (i) sell at retail for
consumption on the licensed premises, any liquor manufactured by the
licensee or any New York state labeled liquor. Provided, however, the
licensee shall regularly keep food available for sale or service to its
retail customers for consumption on the premises. A licensee providing
the following shall be deemed in compliance with this provision:
sandwiches, soups or other such foods, whether fresh, processed,
pre-cooked or frozen; and/or food items intended to compliment the
tasting of alcoholic beverages, which shall mean a diversified selection
of food that is ordinarily consumed without the use of tableware and can
be conveniently consumed while standing or walking, including but not
limited to: cheese, fruits, vegetables, chocolates, breads, mustards and
crackers. All of the provisions of this chapter relative to licenses to
sell liquor at retail for consumption on the premises shall apply so far
as applicable to such licensee; and

(ii) operate a restaurant, hotel, catering establishment, or other
food and drinking establishment in or adjacent to the licensed premises
and sell at such place, at retail for consumption on the premises,
liquor manufactured by the licensee and any New York state labeled
liquor. All of the provisions of this chapter relative to licenses to
sell liquor at retail for consumption on the premises shall apply so far
as applicable to such licensee. Notwithstanding any other provision of
law, the licensee may apply to the authority for a license under this
chapter to sell other alcoholic beverages at retail for consumption on
the premises at such establishment.

(f) No holder of a farm distillery license shall manufacture in excess
of seventy-five thousand gallons of liquor annually. In the case of the
holder of a class A, A-1, B, B-1 or C distiller's license who operates a
farm distillery on the same premises, the liquor manufactured pursuant
to the farm distillery license shall not be considered with respect to
any limitation on the volume that may be manufactured by the class A,
A-1, B, B-1 or C distillery.

(g) The holder of a license issued under this subdivision may operate
up to one branch office located away from the licensed farm distillery.
Such location shall be considered part of the licensed premises and all
activities allowed at and limited to the farm distillery may be
conducted at the branch office. Such branch office shall not be located
within, share a common entrance and exit with, or have any interior
access to any other business, including premises licensed to sell
alcoholic beverages at retail. Prior to commencing operation of any such
branch office, the licensee shall notify the authority of the location
of such branch office and the authority may issue a permit for the
operation of same.

(h) A farm distillery license shall authorize the holder thereof to
manufacture, bottle and sell food condiments and products such as nuts,
popcorn, mulling spices and other spirits related food in addition to
other such food and crafts on and from the licensed premises. 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
liquor. 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 liquor tastings,
which shall mean a diversified selection of food that is ordinarily
consumed without the use of tableware and can be conveniently 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 liquor related products;

(iv) liquor supplies and accessories, which shall include any item
utilized for the storage, serving or consumption of liquor or for
decorative purposes. These supplies may be sold as single items or may
be combined into a package containing liquor;

(v) liquor-making equipment and supplies including, but not limited
to, filters, bottling equipment, and books or other written material to
assist spirits makers to produce and bottle liquor; and

(vi) 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.

(i) Notwithstanding any provision of law to the contrary, another
business or other businesses may operate on the licensed premises
subject to such rules and regulations as the liquor authority may
prescribe. 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 distillery premises, provided however
that a retailer business licensed under this chapter shall not be
permitted to operate at a licensed manufacturing premises.

3. A distiller's license of any class shall not authorize more than
one of said activities, namely, that of a distillery, a rectifying plant
or a fruit brandy distillery, and a separate license shall be required
for each such activity, except as provided in subdivision one of this
section.

4. Any person may apply to the liquor authority for a distiller's
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 article for such license.
If the liquor authority shall grant the application it shall issue a
license in such form as shall be determined by its rules.

5. No distiller shall be engaged in any other business on the licensed
premises. No distiller shall sell or agree to sell any liquor, alcohol
or spirits to any wholesaler or any retailer who is not duly licensed
under this article to sell liquor, alcohol or spirits at wholesale or
retail at the time of such agreement and sale or sell or agree to sell
any liquor, alcohol or spirits to persons outside the state except
pursuant to the laws of the place of such sale or delivery.

6. Any person having applied for and received a license as a farm
distillery under this section may conduct consumer tastings of liquor
pursuant to rules or regulations promulgated by the liquor authority,
and subject to the limitations set forth in paragraph c of subdivision
two-c of this section at the state fair, at recognized county fairs and
at farmers' markets operated on a not-for-profit basis.

7. Any person licensed under this section shall manufacture at least
fifty gallons of liquor per year.

8. Notwithstanding any other provision of law to the contrary, a farm
distillery licensed under subdivision two-c of this section may engage
in custom liquor production for a non-licensed individual under the
following conditions:

(a) the licensee may allow such non-licensed individual to assist in
the production of such custom liquors;

(b) the licensee shall only sell such custom liquor to such
non-licensed individual for that individual's personal or family use,
and not for resale;

(c) the brand label of such custom liquor shall clearly state that the
product is not for resale;

(d) such custom liquor shall not be offered for sale pursuant to
section ninety-nine-g of this chapter;

(e) any tastings conducted pursuant to this subdivision shall be
subject to the provisions of paragraph (c) of subdivision two-c of this
section;

(f) the licensee or an employee or agent of the licensee shall be
present at all times when the non-licensed individual is assisting in
the production of the custom liquor;

(g) the licensee shall be responsible for obtaining approval of the
liquor's brand label pursuant to section one hundred seven-a of this
chapter and the payment of all taxes due before the custom liquor is
delivered to the non-licensed individual;

(h) any custom liquor produced under this subdivision must be a New
York labelled liquor as defined in subdivision twenty-c of section three
of this chapter; and

(i) any custom liquor produced under this subdivision shall be counted
toward the maximum production limit set forth in paragraph (f) of
subdivision two-c of this section.

9. (a) The holder of a license issued under subdivision one, one-a,
two, two-a or two-b of this section may, at the licensed premises,
conduct tastings of, and sell at retail for consumption on or off the
licensed premises, any liquor manufactured by the licensee or any New
York state labeled liquor. Provided, however, that for tastings and
sales for on-premises consumption, the licensee shall regularly keep
food available for sale or service to its retail customers for
consumption on the premises. A licensee providing the following shall be
deemed in compliance with this subdivision: (i) sandwiches, soups or
other such foods, whether fresh, processed, pre-cooked or frozen; and/or
(ii) food items intended to complement the tasting of alcoholic
beverages, which shall mean a diversified selection of food that is
ordinarily consumed without the use of tableware and can be conveniently
consumed while standing or walking, including but not limited to:
cheeses, fruits, vegetables, chocolates, breads, mustards and crackers.
All of the provisions of this chapter relative to licenses to sell
liquor at retail for consumption on and off the premises shall apply so
far as applicable to such licensee.

(b)(i) Sales for off-premises consumption may be made only to
customers who are physically present upon the licensed premises and such
sale shall be concluded by the customer's taking, with him or her, of
the sealed containers purchased by the customer at the time the customer
leaves the licensed premises.

(ii) Sales for off-premises consumption shall not be made where the
order is placed by letter, telephone, fax or e-mail, or where the
customer otherwise does not place the order while the customer is
physically present upon the premises of the licensed premises.

(iii) Sales for off-premises consumption shall not be made where the
contemplated sale requires the licensee to transport or ship by common
carrier, sealed containers of liquor to a customer.