N.Y. Alcoholic Beverage Control Law § 51-a: Farm brewery license

§ 51-a. Farm brewery license. 1. Any person may apply to the authority

for a farm brewery license as provided for in this section to brew beer

within this state for sale. Such application shall be in writing and

verified and shall contain such information as the 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 authority

grants the application, it shall issue a license in such form as shall

be determined by its rules. Such license shall contain a description of

the licensed premises and in form and in substance shall be a license to

the person therein specifically designated to brew beer in the premises

therein specifically licensed.

2. A farm brewery license shall authorize the holder thereof to

operate a brewery for the manufacture of New York state labelled beer.

Such a license shall also authorize the licensee to:

(a) manufacture New York state labelled cider and New York state

labeled braggot;

(b) sell in bulk beer, cider, and braggot manufactured by the licensee

to any person licensed to manufacture alcoholic beverages in this state

or to a permittee engaged in the manufacture of products which are unfit

for beverage use;

(c) sell or deliver beer, cider, and braggot manufactured by the

licensee to persons outside the state pursuant to the laws of the place

of such delivery;

(d) sell beer, cider, and braggot manufactured by the licensee to

wholesalers and retailers licensed in this state to sell such beer,

cider, and braggot, licensed farm distillers, licensed farm wineries,

licensed farm cideries, licensed farm meaderies and any other licensed

farm brewery. All such beer, cider, and braggot sold by the licensee

shall be securely sealed and have attached thereto a label as shall be

required by section one hundred seven-a of this chapter;

(e) sell at the licensed premises beer, cider, and braggot

manufactured by the licensee or any other licensed farm brewery, and

wine and spirits manufactured by any licensed farm winery or farm

distillery, at retail for consumption on or off the licensed premises;

(f) conduct tastings at the licensed premises of beer, cider, and

braggot manufactured by the licensee or any other licensed farm brewery;

(g) 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, beer,

cider, and braggot manufactured by the licensee and any New York state

labeled beer, New York state labeled braggot or New York state labeled

cider. All of the provisions of this chapter relative to licenses to

sell beer, cider, and braggot at retail for consumption on and off the

premises shall apply so far as applicable to such licensee.

Notwithstanding any other provision of law, the licensed farm brewery

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;

(h) sell beer, cider, and braggot manufactured by the licensee or any

other licensed farm brewery at retail for consumption off the premises,

at the state fair, at recognized county fairs and at farmers markets

operated on a not-for-profit basis;

(i) conduct tastings of and sell at retail for consumption off the

premises New York state labelled wine and mead manufactured by a person

licensed to produce wine or mead under this chapter;

(j) conduct tastings of and sell at retail for consumption off the

premises New York state labelled cider manufactured by a licensed cider

producer or licensed farm cidery;

(k) conduct tastings of and sell at retail for consumption off the

premises New York state labelled liquor manufactured by a licensed

distiller or licensed farm distiller; provided, however, that no

consumer may be provided, directly or indirectly: (i) with more than

three samples of liquor for tasting in one calendar day; or (ii) with a

sample of liquor for tasting equal to more than one-quarter fluid ounce;

and

(l) conduct tastings of and sell at retail for consumption off the

premises New York state labelled braggot manufactured by a person

licensed to produce braggot under this chapter; and

(m) engage in any other business on the licensed premises subject to

such rules and regulations as the 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 brewery licensee.

3. (a) A farm brewery licensee may apply for a permit to conduct

tastings away from the licensed premises of beer, cider, and braggot

produced by the licensee. Such permit shall be valid throughout the

state and may be issued on an annual basis or for individual events.

Each such permit and the exercise of the privilege granted thereby shall

be subject to such rules and conditions of the authority as it deems

necessary.

(b) Tastings shall be conducted subject to the following limitations:

(i) tastings shall be conducted by an official agent, representative

or solicitor of one or more farm breweries. Such agent, representative

or solicitor shall be physically present at all times during the conduct

of the tastings; and

(ii) any liability stemming from a right of action resulting from a

tasting of beer, cider, or braggot as authorized herein and in

accordance with the provisions of sections 11-100 and 11-101 of the

general obligations law, shall accrue to the farm brewery.

4. A licensed farm brewery holding a tasting permit issued pursuant to

subdivision three of this section may apply to the authority for a

permit to sell beer, cider, and braggot produced by such farm brewery,

by the bottle, during such tastings in premises licensed under sections

sixty-four, sixty-four-a, eighty-one and eighty-one-a of this chapter.

Each such permit and the exercise of the privilege granted thereby shall

be subject to such rules and conditions of the authority as it deems

necessary.

5. A licensed farm brewery may, under such rules as may be adopted by

the authority, sell beer or cider manufactured by the licensee or any

other licensed farm brewery at retail in bulk by the keg, cask or barrel

for consumption and not for resale at a clam-bake, barbeque, picnic,

outing or other similar outdoor gathering at which more than fifty

persons are assembled.

6. A licensed farm brewery may apply to the authority for a license to

sell liquor and/or wine at retail for consumption on the premises in a

restaurant owned by him and conducted and operated by the licensee in or

adjacent to its farm brewery. All of the provisions of this chapter

relative to licenses to sell liquor or wine at retail or consumption on

the premises shall apply so far as applicable.

7. A farm brewery license shall authorize the holder thereof to

manufacture, bottle and sell food condiments 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. 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:

(a) non-alcoholic beverages for consumption on or off premises,

including but not limited to bottled water, juice and soda beverages;

(b) food items for the purpose of complementing beer and cider

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;

(c) 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 cider, beer and/or hop related products;

(d) beer supplies and accessories, which shall include any item

utilized for the storage, serving or consumption of beer or for

decorative purposes. These supplies may be sold as single items or may

be combined into a package containing beer;

(e) 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;

(f) 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.

8. Notwithstanding any provision of this chapter to the contrary, any

farm brewery licensee may charge for tours of its premises.

9. The holder of a license issued under this section may operate up to

five branch offices located away from the licensed farm brewery. Such

locations shall be considered part of the licensed premises and all

activities allowed at and limited to the farm brewery may be conducted

at the branch offices. Such branch offices 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.

10. (a) No farm brewery shall manufacture in excess of seventy-five

thousand finished barrels of beer, cider, and braggot annually.

(b) A farm brewery shall manufacture at least fifty barrels of beer,

cider, and braggot annually.

11. (a) Except as provided in paragraph (b) of this subdivision, no

licensed farm brewery shall manufacture or sell any beer other than New

York state labelled beer.

(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,

determines that a natural disaster, act of God, or continued adverse

weather condition has destroyed much of the necessary ingredients for

brewing beer, such commissioner, in consultation with the chairman of

the 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 such 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 such 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

destruction of New York grown or produced ingredients 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 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

determination 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

agriculture and markets, in consultation with the chairman of the

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.

12. (a) Except as provided in paragraph (b) of this subdivision, no

licensed farm brewery shall manufacture or sell any cider other than New

York state labelled 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,

determines that a natural disaster, act of God, or continued adverse

weather condition has destroyed 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 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

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 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 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 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.

(c) The commissioner of agriculture and markets shall make available

to farm breweries and to the public each specific apple loss

determination 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

agriculture and markets, in consultation with the chairman of the

authority, may issue additional apple crop loss determinations and shall

expeditiously make available to farm breweries and to the public the

loss determination issued pursuant to this paragraph prior to October

tenth of each year.

13. Notwithstanding any contrary provision of law or of any rule or

regulation promulgated pursuant thereto, and in addition to the

activities which may otherwise be carried out by any person licensed

under this section, such person may, on the premises designated in such

license:

(a) produce, package, bottle, sell and deliver soft drinks and other

non-alcoholic beverages, vitamins, malt, malt syrup, and other

by-products;

(b) dry spent grain from the brewery;

(c) recover carbon dioxide and yeast;

(d) store bottles, packages and supplies necessary or incidental to

all such operations;

(e) package, bottle, sell and deliver wine products;

(f) allow for the premises including space and equipment to be rented

by a licensed tenant brewer for the purposes of alternation.

14. Notwithstanding any other provision of this chapter, the authority

may issue a farm brewery license to the holder of a farm winery or farm

distiller's license for use at such licensee's existing licensed

premises. The holder of a farm winery or farm distiller's license that

simultaneously holds a farm brewery license on an adjacent premises may

share and use the same tasting room facilities to conduct any tastings

that such licensee is otherwise authorized to conduct.

15. The authority is hereby authorized to promulgate rules and

regulations to effectuate the purposes of this section. In prescribing

such rules and regulations, the authority shall promote the expansion

and profitability of beer and cider production and of tourism in New

York, thereby promoting the conservation, production and enhancement of

New York state agricultural lands.

16. 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 brewery premises, provided however that

a retailer business licensed under this chapter shall not be permitted

to operate at a licensed manufacturing premises.