Authorizes the operation of home wine makers centers as food processing establishments under the jurisdiction of the department of agriculture and markets; 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.
TITLE OF BILL: An act to amend the agriculture and markets law and the alcoholic beverage control law, in relation to providing that food processing establishments shall include 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 to this "B" print are 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.
SUMMARY OF PROVISIONS: Section 1: Amends Agriculture and Markets Law section 251-z-2 to add to the definition of "food processing establishment" all 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/faq.shtml (at W-A)).
Section 2: Adds a new Agriculture and Markets Law section 251-z-13 to establish the conditions that a licensed home wine makers center (Center) must satisfy to be licensed in this State and to satisfy federal law with regards to the production of wines for home consumption and not for resale.
As per federal law and its rules and regulations, this section outlines what participating home wine makers must do to produce home made 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 (TTB). The TTB issues federal licenses for the production of commercial wine that may be sold to the general public, but does not license home wine making centers because the production of such wines is exempt by federal law and its rules and regulations. (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/faq (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, farm wineries, and micro-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 (SLA) consents to the issuance of such a license. The SLA must 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.
Section 3: 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 home made wines always remain segregated.
Section 4: 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 home made wines always remain segregated.
Section 5: Amends Alcoholic Beverage Control Law section 76-f to authorize a micro-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 home made wines always remain segregated.
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. Under federal regulations, New York must 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: One way to encourage expansion of the grape growing and other fruit growing industries in this State is to 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 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 home made wines.
This bill facilitates the production of home made wines. It encourages production of home made 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. 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 home made wines produced by this State's residents and increase the demand for locally grown grapes.
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. New York produces many quality wines from un-California like grape varieties that are not commonly consumed by the wine drinking public (i.e. French-hybrid and lubrusca grape varieties). Encouraging local home wine makers to use French-hybrid and lubrusca grapes can get such vintners (who generally consume on average more commercial wine than the general public) to become accustomed to these grape varieties and thereby increase the sale of commercially produced wines from French-hybrid and lubrusca grape varieties.
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.
The trend in New York's agricultural industry is that the more successful farms and agri-businesses are not concentrating in growing just one crop or operating one business, but diversifying their operations to increase over-all revenue generation and to sell their produce at retail as opposed to wholesale prices.
LEGISLATIVE HISTORY: S.7246-B/A.10415-B of 2008 S.3495/A.2303 of 2009
FISCAL IMPLICATIONS: None.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: January 1, in the year succeeding the year this law shall become effective.
STATE OF NEW YORK ________________________________________________________________________ 4533 2011-2012 Regular Sessions IN SENATE April 11, 2011 ___________Introduced by Sen. CARLUCCI -- 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 and the alcoholic bever- age control law, in relation to providing that food processing estab- lishments shall include 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. Subdivisions 3 and 4 of section 251-z-2 of the agriculture and markets law, subdivision 3 as amended by chapter 507 of the laws of 1973 and subdivision 4 as added by chapter 863 of the laws of 1972, are amended and a new subdivision 5 is added to read as follows: 3. The term "food processing establishment" means any place which receives food or food products for the purpose of processing or other- wise adding to the value of the product for commercial sale, AND THOSE PLACES LICENSED AS HOME WINE MAKERS CENTERS THAT PRODUCE WINE FOR HOME CONSUMPTION AND NOT FOR COMMERCIAL SALE. It includes, but is not limit- ed to, bakeries, processing plants, beverage plants
[and], food manufac- tories, AND HOME WINE MAKERS CENTERS. However, the term does not include: those establishments that process and manufacture food or food products that are sold exclusively at retail for consumption on the premises; those operations which cut meat and sell such meat at retail on the premises; bottled and bulk water facilities; those food process- ing establishments which are covered by articles four, [four-a, five-a, five-b, five-c, five-d, seventeen-b,]FOUR-A, FIVE-A, FIVE-B, FIVE-C, FIVE-D, SEVENTEEN-B, nineteen [, twenty-b,]and twenty-one of this chap- ter; service food establishments, including vending machine commissar- ies, under permit and inspection by the [state]department of health or by a local health agency which maintains a program certified and approved by the [state]commissioner of health; establishments under federal meat, poultry or egg product inspection; or establishments engaged solely in the harvesting, storage, or distribution of one orEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10267-01-1 S. 4533 2
more raw agricultural commodities which are ordinarily cleaned, prepared, treated or otherwise processed before being marketed to the consuming public. 4. The term "processing" means processing foods in any manner, such as by manufacturing, canning, preserving, freezing, drying, dehydrating, juicing, pickling, baking, brining, bottling, packing, repacking, press- ing, waxing, heating or cooking, or otherwise treating food in such a way as to create a risk that it may become adulterated if improperly handled, OR THE FERMENTATION OF FRUIT, AS DEFINED IN SUBDIVISION NINE OF SECTION TWO HUNDRED FIFTY-ONE-Z-THIRTEEN OF THIS ARTICLE INTO WINE, FOR HOME CONSUMPTION, UPON THE PREMISES OF A HOME WINE MAKERS CENTER. 5. THE TERM "WINE MAKERS CENTER" MEANS ANY PLACE WHERE AN INDIVIDUAL PAYS A FEE TO USE SPACE AND EQUIPMENT FOR THE PURPOSE OF MAKING WINE FOR PERSONAL HOUSEHOLD USE AND NOT FOR RESALE. S 2. Section 251-z-13 of the agriculture and markets law, as renum- bered by chapter 665 of the laws of 2005, is renumbered section 251-z-14 and a new section 251-z-13 is added to read as follows: S 251-Z-13. HOME WINE MAKERS CENTERS. 1. THE PROVISIONS OF THIS SECTION SHALL APPLY TO HOME WINE MAKERS CENTERS IN ADDITION TO ANY OTHER PROVISION OF THIS ARTICLE. THE OPERATION OF HOME WINE MAKERS CENTERS SHALL BE SUBJECT TO THE PROVISIONS OF THIS ARTICLE AND THE SUPERVISION OF THE DEPARTMENT. PROVIDED, HOWEVER, THAT THE DEPARTMENT MAY CONSULT WITH THE STATE LIQUOR AUTHORITY BEFORE ISSUING SUCH LICENSE TO ENSURE COMPLIANCE WITH THE ALCOHOLIC BEVERAGE CONTROL LAW. SUCH OPERATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THE ALCOHOLIC BEVERAGE CONTROL LAW OR THE JURISDICTION OF THE STATE LIQUOR AUTHORITY, UNLESS SPECIFICALLY PROVIDED IN THIS ARTICLE. 2. EVERY HOME WINE MAKERS CENTER SHALL BE LICENSED BY THE COMMISSIONER TO PROVIDE, FOR A FEE, FRUIT, AND EQUIPMENT AND STORAGE FACILITIES FOR THE PRODUCTION OF WINE BY INDIVIDUALS FOR PERSONAL HOUSEHOLD USE AND NOT FOR RESALE IN ACCORDANCE WITH FEDERAL LAW, RULES AND REGULATIONS AUTHOR- IZING THE PRODUCTION OF WINE FOR HOUSEHOLD PERSONAL OR FAMILY USE. 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 FIFTY 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 HOUSEHOLD MAY PRODUCE AN AGGREGATE OF NOT MORE THAN ONE 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;S. 4533 3
(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, FARM WINERY OR MICRO-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, FARM WINERY OR MICRO-WINERY. 8. (A) A PERSON OR ENTITY LICENSED PURSUANT TO THE ALCOHOLIC BEVERAGE CONTROL LAW MAY ALSO BE LICENSED AS A HOME WINE MAKERS CENTER ON THE SAME OR ADJACENT PREMISES OF A WINERY, FARM WINERY OR MICRO-WINERY, IF SUCH PERSON OR ENTITY IS THE HOLDER OF: (I) A WINERY LICENSE, PURSUANT TO SECTION SEVENTY-SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW; (II) A FARM WINERY LICENSE, PURSUANT TO SECTION SEVENTY-SIX-A OF THE ALCOHOLIC BEVERAGE CONTROL LAW; OR (III) A MICRO-WINERY LICENSE, PURSUANT TO SECTION SEVENTY-SIX-F OF THE ALCOHOLIC BEVERAGE CONTROL LAW. (B) NO WINERY, FARM WINERY OR MICRO-WINERY AUTHORIZED TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE ISSUED A LICENSE PURSUANT TO THIS ARTICLE, UNLESS THE STATE LIQUOR AUTHORITY GRANTS A WRITTEN CONSENT LETTER THERETO. THE STATE 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, FARM WINERY OR MICRO-WINERY APPLYING FOR CONSENT COMPLIES WITH SUCH FEDERAL LAW, RULES AND REGULATIONS THE STATE LIQUOR AUTHORITY SHALL GRANT ITS WRITTEN CONSENT FOR THE OPERATION OF A HOME WINE MAKERS CENTER. SUCHS. 4533 4
AUTHORITY SHALL NOT ESTABLISH ANY ADDITIONAL REQUIREMENT FOR THE GRANT- ING OF ITS WRITTEN CONSENT. (C) THE OPERATIONS OF A HOME WINE MAKERS CENTER OPERATED BY ANY WINERY, FARM WINERY OR MICRO-WINERY SHALL BE SEGREGATED FROM THE PORTION OF SUCH WINERY, FARM WINERY OR MICRO-WINERY IN WHICH WINE SUBJECT TO THE PROVISIONS OF THE ALCOHOLIC BEVERAGE CONTROL LAW IS FERMENTED, PROC- ESSED, BOTTLED, STORED, SHIPPED AND SOLD. PROVIDED, HOWEVER, THAT A WINERY, FARM WINERY OR MICRO-WINERY MAY SHARE ITS WINE MAKING EQUIPMENT 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 PREM- ISES IN WHICH A WINERY, FARM WINERY OR MICRO-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 3. Section 76 of the alcoholic beverage control law is amended by adding a new subdivision 8 to read as follows: 8. NOTWITHSTANDING ANY PROVISION OF THIS SECTION, A LICENSED WINERY SHALL BE AUTHORIZED TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO ARTICLE TWENTY-C OF THE AGRICULTURE AND MARKETS LAW. PROVIDED, FURTHER, THAT A WINERY MAY OPERATE SUCH A CENTER UPON THE SAME OR ADJACENT PREM- ISES AS THE WINERY IS OPERATED SUBJECT TO THE PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION EIGHT OF SECTION TWO HUNDRED FIFTY-ONE-Z-THIRTEEN OF THE AGRICULTURE AND MARKETS LAW AND FEDERAL LAW. S 4. Section 76-a of the alcoholic beverage control law is amended by adding a new subdivision 8 to read as follows: 8. NOTWITHSTANDING ANY PROVISION OF THIS SECTION, A LICENSED FARM WINERY SHALL BE AUTHORIZED TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO ARTICLE TWENTY-C OF THE AGRICULTURE AND MARKETS LAW. 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 PARAGRAPH (C) OF SUBDIVISION EIGHT OF SECTION TWO HUNDRED FIFTY-ONE-Z-THIRTEEN OF THE AGRICULTURE AND MARKETS LAW AND FEDERAL LAW. S 5. Section 76-f of the alcoholic beverage control law is amended by adding a new subdivision 9 to read as follows: 9. NOTWITHSTANDING ANY PROVISION OF THIS SECTION, A LICENSED MICRO-WINERY SHALL BE AUTHORIZED TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO ARTICLE TWENTY-C OF THE AGRICULTURE AND MARKETS LAW. PROVIDED, FURTHER, THAT A MICRO-WINERY MAY OPERATE SUCH A CENTER UPON THE SAME OR ADJACENT PREMISES AS THE MICRO-WINERY IS OPERATED SUBJECT TO THE PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION EIGHT OF SECTION TWO HUNDRED FIFTY-ONE-Z-THIRTEEN OF THE AGRICULTURE AND MARKETS LAW AND FEDERAL LAW. S 6. Section 83 of the alcoholic beverage control law is amended by adding a new subdivision 8 to read as follows: 8. THE FEE FOR A WRITTEN CONSENT LETTER AUTHORIZING A WINERY, FARM WINERY OR MICRO-WINERY TO OPERATE A HOME WINE MAKERS CENTER PURSUANT TO ARTICLE TWENTY-C OF THE AGRICULTURE AND MARKETS LAW SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS. S 7. 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.