Bill S1980B-2013

Provides for the operation of home wine makers centers

Authorizes the operation of home wine makers centers under the jurisdiction of the state liquor authority; defines such centers as places where individuals pay a fee to use space and equipment for the purpose of making wine for personal household use and not for resale; authorizes wineries and farm wineries to operate such a business.

Details

Actions

  • May 28, 2014: referred to agriculture
  • May 28, 2014: DELIVERED TO ASSEMBLY
  • May 28, 2014: PASSED SENATE
  • May 19, 2014: ADVANCED TO THIRD READING
  • May 14, 2014: 2ND REPORT CAL.
  • May 14, 2014: AMENDED (T) 1980B
  • May 13, 2014: 1ST REPORT CAL.716
  • Jan 28, 2014: REPORTED AND COMMITTED TO FINANCE
  • Jan 14, 2014: PRINT NUMBER 1980A
  • Jan 14, 2014: AMEND AND RECOMMIT TO AGRICULTURE
  • Jan 8, 2014: REFERRED TO AGRICULTURE
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 18, 2013: referred to agriculture
  • Jun 18, 2013: DELIVERED TO ASSEMBLY
  • Jun 18, 2013: PASSED SENATE
  • Jun 18, 2013: ORDERED TO THIRD READING CAL.1423
  • Jun 18, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Feb 12, 2013: REPORTED AND COMMITTED TO FINANCE
  • Jan 9, 2013: REFERRED TO AGRICULTURE

Calendars

Votes

Memo

BILL NUMBER:S1980B

TITLE OF BILL: An act to amend the alcoholic beverage control law, in relation to the operation of home wine makers centers

PURPOSE:

The Purpose of this bill is to create a regulatory mechanism so that home wine maker centers can be established in this State as they have been established in many other wine producing states such as California, Washington, and Oregon. This bill will facilitate the ability of home wine makers to pool their resources and share equipment and storage facilities to produce quality wine for home consumption as is currently allowed for under federal regulations. The amendments contained in this bill were suggested language changes provided by the Federal Alcohol and Tobacco Tax and Trade Bureau (TTB) to ensure that this state bill complies with Federal Law.

In the end, this bill should give urban and suburban residents an outlet to produce a product that can be made by and enjoyed by families looking for activities that they can do together and/or to carry on the family tradition of wine making to future generations. Further, these facilities could be located in village centers near surrounding fruit farms to help revitalize such villages.

SUMMARY OF PROVISIONS:

Section 1: Amends Alcoholic Beverage Control Law section 76 to authorize a winery to also operate on the same or adjacent premises a licensed Center as long as the criteria established in this law and federal law & rules and regulations are adhered to so that commercial and homemade wines always remain segregated.

Section 2: Amends Alcoholic Beverage control Law section 76-a to authorize a farm winery to also operate on the same or adjacent premises a licensed Center as long as the criteria established in this law and federal law & rules and regulations are adhered to so that commercial and homemade wines always remain segregated.

Section 3: Amends section 83 of the Alcoholic Beverage Control Law to requires the fee for a written consent letter authorizing a winery or farm winery to operate a home wine makers center to be $125.

Section 4: Amends section 90 of the Alcohol Beverage Control Law to add the new permit of Home Wine Making Centers.

Section 5: Adds a new Alcohol Beverage Control Law section 97-b licensed "home wine making centers" (centers). These licensed Centers will allow home wine makers to work independently from other home wine makers in the same facility so that they can make their own wines for home consumption as is permitted under federal law. (see 27 CFR 24.75 and www.ttb,gov/wine/faa.shtml (at W-A)).

This section also establishes the conditions that a licensed home wine makers center (Center) must satisfy to be licensed in this State. These are the same considerations that are used to satisfy federal law with regards to the production of wines for home consumption and not for resale. These centers can be free standing and not associated with a licensed winery or farm winery or located on the same premises if all segregation conditions are satisfied.

As per federal law and its rules and regulations, this section outlines what participating home wine makers must do to produce homemade wines at these Centers and continue to satisfy federal law to remain exempt from the regulation of the Alcohol and Tobacco Tax and Trade Bureau(TT8). The TTB issues federal licenses for the production of commercial wine that may be sold to the general public. However, it does not license home wine making centers because the production of such wines is exempt by federal law and its rules and regulations because it is wine made for home consumption. (see 27 CFR 24,75 and www.ttb.gov/wine/faq. (at W-4)).

This section also specifies what Centers and their employees may do and may not do to assist participating home wine makers who are making tax exempt wines at licensed Centers for home consumption and not for sale. These are the same standards articulated by the TTB to satisfy federal requirement to establish such Centers. (see www/ttb.gov/wine/fag (at w-4)).

This section authorizes such Centers to be established as free standing tax exempt (non-bonded) wine production facility for home wine makers. Further, this law permits wineries and farm wineries to obtain a license to operate a Center on the same premises or a premises adjacent to a winery as long as the state Liquor Authority consents to the issuance of such a license. The SLA should consent to a winery application if all TTB criteria have been satisfied.

The law is very clear that the Center and winery may share equipment and be in the same building, but that wine produced at a commercial winery must always remain segregated from wine made for home consumption and stored in separate storage rooms. The law conforms to the standards established by federal law to establish a Center on the same or adjacent premises to a commercial winery as long as the wine is not commingled nor made and stored in the same storage room or part of the bonded winery. Home made wines, at no time, may enter the bonded portion of a winery building.

EXISTING LAW:

Federal law permits Centers to be established without the issuance of a federal TTB winery license because such activities are deemed to be home wine making activities which are exempt for federal wine licensing and registration requirements and taxation. Many states have adopted laws to allow for such Centers to be established or have deemed them to be authorized since they are exempt from federal jurisdiction. Under federal regulations, New York can adopt a law to authorize these Centers for

them to be allowed to exist in this state. Many wine-making states, including California, Washington, and Oregon have adopted similar laws to permit the establishment of Centers in their own states.

JUSTIFICATION:

This bill should help to facilitate the production of homemade wines. It encourages production of homemade wines by allowing many home wine makers to operate in a licensed facility where they can share wine making equipment, such as wine Presses, pumps, filters, storage and bottling facilities, and laboratory facilities. Further, technical assistance can be given to these hobbyist winemakers. This lowers the overhead costs for home wine making production.

In addition, Center employees can give advice on the proper techniques to make wine so that wine quality increases. Lowering the overhead costs to produce wine, supplying a place in which it is easy to make, store, and bottle, and making such wine in a place that has experts to obtain advice from to produce superior wines should all help to make it easier for home wine makers to make quality wines for home consumption. This, in turn, should increase the amount of homemade wines produced by this State's residents and increase the demand for locally grown fruits.

For many urban and suburban residents, they often do not have enough space or adequate space to make homemade wines in their homes or apartments. Establishing Home winemakers centers would provide the kinds of facilities that these urban and suburban residents need to be able to make wines for their own home consumption. Such facilities could be located in rural areas (adding needed in employment in these economically depressed areas of the State) and provide recreation for such individuals. Such centers could also be located in villages that are near local fruit farms or in urban areas that while close to these individuals homes, would have ample space and equipment to make homemade wines.

In addition, this bill may help to encourage expansion of the grape growing and other fruit growing industries in this State. This is because it would increase the demand for locally grown grapes. Establishing Home Wine Makers Centers (Centers) is one way to increase the demand for locally grown fruits. This idea came from apple and grape farmers in the Hudson Valley who wanted to establish such a Center on their farm so that they could increase the sales of their apple and grape crops. In addition, income could be derived from the sale of wine making supplies and leasing storage space for the making of homemade wines.

Further, by encouraging home wine makers to use local grapes, this may increase the demand for and sales of New York's commercially produced wines because they use the same grape varieties as these home wine makers will use.

It is hoped that by increasing the number of home wine makers, this will increase the "talent pool" of wine makers available for employment in commercial wineries. Many home wine makers have "graduated" to working either full-time or part-time in already established commercial wineries. Further, some have even gone on to establish their own commercial wineries to produce wines for commercial sale. It is important for the New York wine industry to increase the overall skill and depth of the number of wine makers available for use in this growing industry. Encouraging the growth of New York's wine industry will, in turn, increase the demand for New York state produced grapes and other fruits.

Another benefit of this bill is to authorize farms, wineries, farm wineries and micro-wineries to establish ancillary businesses on the same premises or premises adjacent to a farm or a winery to increase their overall profit margin. By enacting this bill into law, wineries could increase the utilization of their otherwise idle wine making equipment, increase sales of grapes that they grow or are grown by farmers associated with the winery, but are not being utilized by their commercial winery operation, and renting out underutilized space within their wineries to home wine makers.

For farmers without a winery, a Center could be established on such a farm. The benefit of such a Center to a farm operation is that the grower could more effectively market the sale of their agricultural produce to home wine makers at higher retail prices instead of lower wholesale or bulk prices. Further, such center could be located in a smaller village center that is near local farms that produce fruit.

LEGISLATIVE HISTORY:

This bill while new, is a revision done so that it remains completely in the ABC Law so that this activity can be regulated by the State Liquor Authority.

S.7246B/A.10415B of 2008 - Passed Senate S.3495/A.2303 of 2009 - Referred to Agriculture S.4533-A/A.7971 - A Passed Senate

FISCAL IMPLICATIONS:

None.

LOCAL FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

January 1, in the year succeeding the year this law shall become effective.


Text

STATE OF NEW YORK ________________________________________________________________________ 1980--B Cal. No. 716 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sens. CARLUCCI, GALLIVAN, GIPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Agricul- ture -- recommitted to the Committee on Agriculture in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee and committed to the Committee on Finance -- reported favorably from said committee, ordered to first report, amended on first report, ordered to a second report and ordered reprinted, retaining its place in the order of second report AN ACT to amend the alcoholic beverage control law, in relation to the operation of home wine makers centers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 76 of the alcoholic beverage control law is amended by adding a new subdivision 14 to read as follows: 14. NOTWITHSTANDING ANY PROVISION OF THIS SECTION, A LICENSED WINERY SHALL BE AUTHORIZED TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO SECTION NINETY-SEVEN-B OF THIS CHAPTER. PROVIDED, FURTHER, THAT A WINERY MAY OPERATE SUCH A CENTER UPON THE SAME OR ADJACENT PREMISES AS THE WINERY IS OPERATED SUBJECT TO THE PROVISIONS OF SECTION NINETY-SEV- EN-B OF THIS CHAPTER AND FEDERAL LAW. S 2. Section 76-a of the alcoholic beverage control law is amended by adding a new subdivision 11 to read as follows: 11. NOTWITHSTANDING ANY PROVISION OF THIS SECTION, A LICENSED FARM WINERY SHALL BE AUTHORIZED TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO SECTION NINETY-SEVEN-B OF THIS CHAPTER. PROVIDED, FURTHER, THAT A FARM WINERY MAY OPERATE SUCH A CENTER UPON THE SAME OR ADJACENT PREMISES AS THE FARM WINERY IS OPERATED SUBJECT TO THE PROVISIONS OF SECTION NINETY-SEVEN-B OF THIS CHAPTER AND FEDERAL LAW.
S 3. Section 83 of the alcoholic beverage control law is amended by adding a new subdivision 9 to read as follows: 9. THE FEE FOR A WRITTEN CONSENT LETTER AUTHORIZING A WINERY OR FARM WINERY TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO SECTION NINETY- SEVEN-B OF THIS CHAPTER SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS. S 4. Section 90 of the alcoholic beverage control law is amended by adding a new subdivision 7-a to read as follows: 7-A. HOME WINE MAKERS CENTER PERMIT. S 5. The alcoholic beverage control law is amended by adding a new section 97-b to read as follows: S 97-B. HOME WINE MAKERS CENTERS. 1. THE PROVISIONS OF THIS SECTION SHALL APPLY TO HOME WINE MAKERS CENTERS. THE OPERATION OF HOME WINE MAKERS CENTERS SHALL BE SUBJECT TO THE SUPERVISION OF THE LIQUOR AUTHOR- ITY TO ENSURE COMPLIANCE WITH THE PROVISIONS OF FEDERAL LAW AND THE RULES AND REGULATIONS OF THE FEDERAL ALCOHOL AND TOBACCO TAX AND TRADE BUREAU RELATING TO SUCH CENTERS. 2. EVERY HOME WINE MAKERS CENTER SHALL HOLD A PERMIT ISSUED BY THE LIQUOR AUTHORITY TO PROVIDE, FOR A FEE, FRUIT, AND EQUIPMENT AND STORAGE FACILITIES FOR THE PRODUCTION OF WINE BY INDIVIDUALS FOR PERSONAL HOUSE- HOLD USE AND NOT FOR RESALE IN ACCORDANCE WITH FEDERAL LAW, RULES AND REGULATIONS AUTHORIZING THE PRODUCTION OF WINE FOR HOUSEHOLD PERSONAL OR FAMILY USE. THE FEE FOR SUCH PERMIT SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS A YEAR. 3. EVERY PERSON ENGAGING IN THE PRODUCTION OF WINE AT A HOME WINE MAKERS CENTER: (A) SHALL BE TWENTY-ONE YEARS OF AGE OR OLDER; (B) SHALL BE LIMITED TO PRODUCING NOT MORE THAN ONE HUNDRED GALLONS OF WINE DURING ANY CALENDAR YEAR; PROVIDED THAT IF THERE ARE ONE OR MORE OTHER PERSONS WHO ARE TWENTY-ONE YEARS OF AGE RESIDING IN THE SAME HOUSEHOLD AS SUCH PERSON, AND ALL OTHER SUCH PERSONS IN THE SAME HOUSE- HOLD MAY PRODUCE AN AGGREGATE OF NOT MORE THAN TWO HUNDRED GALLONS OF WINE FOR THE HOUSEHOLD DURING ANY CALENDAR YEAR; (C) MAY REMOVE THE WINE HE OR SHE PRODUCES AT THE HOME WINE MAKERS CENTER FOR THE PURPOSE OF PERSONAL USE, INCLUDING USE IN CONTESTS OR TASTINGS; (D) SHALL NOT PRODUCE WINE FOR SALE OR OFFER SUCH WINE FOR SALE; (E) SHALL PRODUCE NOT LESS THAN FIVE GALLONS OF WINE IN EACH CALENDAR YEAR; (F) MAY JOINTLY PRODUCE WINE WITH PERSONS RESIDING IN A DIFFERENT HOUSEHOLD OR HOUSEHOLDS AS LONG AS THE QUANTITY OF WINE MADE IS WITHIN THE QUANTITY LIMITS SPECIFIED PURSUANT TO FEDERAL LAW, RULES AND REGU- LATIONS; (G) SHALL ACTIVELY PARTICIPATE IN THE PRODUCTION OF THE WINE; (H) SHALL USE FRUIT GROWN OR PRODUCED IN THE STATE OF NEW YORK TO PRODUCE THE WINE; (I) SHALL ADD YEAST AND/OR OTHER INGREDIENTS TO THE GRAPE OR OTHER FRUIT JUICE OR WINE; (J) SHALL CAUSE THE FRUIT TO FERMENT; (K) SHALL RACK, FILTER AND BOTTLE THE WINE; (L) SHALL NOT ACCEPT ANY UNAUTHORIZED ASSISTANCE FROM THE HOME WINE MAKERS CENTER, OR FROM ANY EMPLOYEE OR AGENT THEREOF; AND (M) SHALL READ AND SIGN A STATEMENT THAT HE OR SHE UNDERSTANDS AND AGREES TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION. 4. NO HOME WINE MAKERS CENTER, NOR ANY EMPLOYEE OR AGENT THEREOF, SHALL ASSIST ANY CUSTOMER IN THE PRODUCTION OF WINE, EXCEPT AS FOLLOWS:
(A) THE FURNISHING, SELLING OR RENTING OF SPACE, SUPPLIES AND EQUIP- MENT, INGREDIENTS, FRUIT, AND BOTTLING SUPPLIES; (B) THE PROVISION OF ADVICE AND TECHNICAL SERVICES TO CUSTOMERS AS PROVIDED PURSUANT TO FEDERAL LAW, RULES AND REGULATIONS; (C) THE MOVING OF CONTAINERS OF WINE BETWEEN STORAGE AREAS; (D) THE PROVISION, MAINTENANCE, CLEANING AND REPAIR OF WINE MAKING EQUIPMENT, SUCH AS PRESSES, PUMPS, FILTERS, BOTTLING EQUIPMENT AND OTHER EQUIPMENT; (E) THE PROVISION, RENTAL OR SALE OF STORAGE VESSELS, INCLUDING, BUT NOT LIMITED TO, GLASS CARBOYS, WOODEN BARRELS OR OTHER STORAGE CONTAIN- ERS FOR WINE FERMENTATION AND STORAGE; (F) THE PROVISION OF A CLIMATE AND TEMPERATURE CONTROLLED SPACE FOR WINE FERMENTATION AND STORAGE; (G) THE DISPOSAL OF GRAPE PRESSINGS AND OTHER WASTES; AND (H) THE PROVISION OF QUALITY CONTROL SERVICES, SUCH AS LABORATORY ANALYSIS AND TASTING OF WINE FOR QUALITY CONTROL PURPOSES IN THE PRES- ENCE OF THE HOME WINE MAKER. 5. NO HOME WINE MAKERS CENTER SHALL ALLOW, MAINTAIN OR STORE ANY CONTAINER OF WINE IN EXCESS OF ONE HUNDRED GALLONS. 6. THE AGGREGATE PRODUCTION OF ALL INDIVIDUALS OR HOUSEHOLDS MAKING WINE AT A HOME WINE MAKERS CENTER PURSUANT TO A HOME WINE MAKERS LICENSE SHALL NOT EXCEED TEN THOUSAND GALLONS PER YEAR. PROVIDED, THAT SUCH AGGREGATE PRODUCTION LIMIT SHALL NOT BE OFFSET BY WINES PRODUCED AT SUCH FACILITY UNDER A WINERY OR FARM WINERY LICENSE. 7. THE LOCATION OF A FREE STANDING HOME WINE MAKERS CENTER MAY BE ON A FARM OR OTHER PREMISES THAT IS NOT ASSOCIATED WITH A WINERY OR FARM WINERY. 8. (A) A PERSON OR ENTITY LICENSED PURSUANT TO THIS CHAPTER MAY ALSO BE AUTHORIZED AND HOLD A PERMIT TO OPERATE A HOME WINE MAKERS CENTER ON THE SAME OR ADJACENT PREMISES OF A WINERY OR FARM WINERY, IF SUCH PERSON OR ENTITY IS THE HOLDER OF: (I) A WINERY LICENSE, PURSUANT TO SECTION SEVENTY-SIX OF THIS CHAPTER; OR (II) A FARM WINERY LICENSE, PURSUANT TO SECTION SEVENTY-SIX-A OF THIS CHAPTER. (B) NO WINERY OR FARM WINERY AUTHORIZED TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE ISSUED A PERMIT PURSUANT TO THIS SECTION, UNLESS THE LIQUOR AUTHORITY GRANTS A WRITTEN CONSENT LETTER THERETO. THE LIQUOR AUTHORITY, IN GRANTING ITS CONSENT, SHALL DETERMINE WHETHER THE APPLICANT COMPLIES OR WILL COMPLY WITH THE PROVISIONS OF FEDERAL LAW AND THE RULES AND REGULATIONS OF THE FEDERAL ALCOHOL AND TOBACCO TAX AND TRADE BUREAU RELATING TO HOME WINE MAKERS CENTERS. IF THE WINERY OR FARM WINERY APPLYING FOR CONSENT COMPLIES WITH SUCH FEDERAL LAW, RULES AND REGULATIONS THE LIQUOR AUTHOR- ITY SHALL GRANT ITS WRITTEN CONSENT FOR THE OPERATION OF A HOME WINE MAKERS CENTER. SUCH AUTHORITY SHALL NOT ESTABLISH ANY ADDITIONAL REQUIREMENT FOR THE GRANTING OF ITS WRITTEN CONSENT. (C) THE OPERATIONS OF A HOME WINE MAKERS CENTER OPERATED BY ANY WINERY OR FARM WINERY SHALL BE SEGREGATED FROM THE PORTION OF SUCH WINERY OR FARM WINERY IN WHICH WINE SUBJECT TO THE PROVISIONS OF THIS CHAPTER IS FERMENTED, PROCESSED, BOTTLED, STORED, SHIPPED AND SOLD. PROVIDED, HOWEVER, THAT A WINERY OR FARM WINERY MAY SHARE ITS WINE MAKING EQUIP- MENT WITH A LICENSED HOME WINE MAKERS CENTER AS LONG AS ALL HOME MADE WINES PRODUCED BY SUCH EQUIPMENT IS SEGREGATED FROM SUCH PORTION OF THE PREMISES IN WHICH A WINERY OR FARM WINERY IS LOCATED.
9. FOR THE PURPOSES OF THIS SECTION, "FRUIT" SHALL MEAN GRAPES, OTHER FRUITS, FRUIT JUICES AND OTHER AGRICULTURAL PRODUCTS INCLUDING, BUT NOT LIMITED TO, HONEY, FLOWERS AND VEGETABLES. S 6. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law; provided, that, effec- tive immediately any rules, regulations or other actions necessary to implement the provisions of this act on its effective date are author- ized and directed to be completed on or before such date.

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