N.Y. Alcoholic Beverage Control Law § 61: Distiller's licenses

§ 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.