Relates to brewer's licenses.
Ayes (30): Kruger, Krueger, Stachowski, Oppenheimer, Montgomery, Duane, Parker, Stavisky, Dilan, Stewart-Cousins, Thompson, Breslin, Espada, Klein, Perkins, Valesky, Peralta, DeFrancisco, Volker, LaValle, Seward, Saland, Farley, Hannon, Larkin, Nozzolio, Leibell, Maziarz, Marcellino, Robach
Ayes W/R (1): Padavan
Nays (1): Diaz
Excused (1): Johnson O
Ayes (9): Stachowski, Hassell-Thompson, Parker, Stewart-Cousins, Aubertine, Espada, Foley, Robach, Volker
Ayes W/R (3): Alesi, Fuschillo, Griffo
Ayes (61): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Duane, Espada, Farley, Flanagan, Foley, Fuschillo, Golden, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Montgomery, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Skelos, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Excused (1): Morahan
BILL NUMBER: S6970
TITLE OF BILL : An act to amend the alcoholic beverage control law, in relation to brewer's licenses
PURPOSE : To allow New York State breweries to maximize the use of their premises and equipment.
SUMMARY OF PROVISIONS : Section 1: Amends subdivision seven of section fifty-one of the alcoholic beverage control law to allow for premises including space and equipment to be rented by a licensed tenant brewer and allows for brewers to manufacture produce, blend, package, bottle, purchase, sell and deliver alcoholic beverage beverages.
JUSTIFICATION : Alternating proprietorships promote economic development by allowing existing breweries to use excess capacity by leasing space and equipment to tenant brewers. Current federal law allows for breweries to lease space and equipment to a tenant brewer (TTB Circular 2005-2). In addition, State Law and Review commission in its recent report "The New York State Law Revisions Commission Report on the Alcoholic Beverage Control Law and its Administration, December 15, 2009" recommended that, with regards to brewers, "..permitting an alternating proprietorship or a contract brewing arrangement is consistent with federal law and should be made part of the ABC law."
According to recent industry growth data for US breweries small independent craft brewers who often produce product through alternating proprietorships are an important sector of brewery production accounting for 4% or production and 6.3 % of retail sales. This and other provisions in the bill such as expanding brewery licenses to allow for the manufacture of alcoholic beverages for export are intended to promote the ability of breweries to utilize their existing facilities in the state to expand investment and create additional jobs.
LEGISLATIVE HISTORY : None.
FISCAL IMPLICATIONS : Increase licensing fees.
LOCAL FISCAL IMPLICATIONS : None.
EFFECTIVE DATE : Immediate.
STATE OF NEW YORK ________________________________________________________________________ 6970 IN SENATE March 1, 2010 ___________Introduced by Sen. STACHOWSKI -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business AN ACT to amend the alcoholic beverage control law, in relation to brewer's licenses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 7 of section 51 of the alcoholic beverage control law, as amended by chapter 871 of the laws of 1986, is amended to read as follows: 7. Notwithstanding any contrary provision of law or of any rule or regulation promulgated pursuant thereto, and in addition to the activ- ities which may otherwise be carried on by any person licensed as a brewer under this chapter, 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 sirup, 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;
[and](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; AND (G) MANUFACTURE, PRODUCE, BLEND, PACKAGE, BOTTLE, PURCHASE, SELL AND DELIVER ALCOHOLIC BEVERAGES. If any licensed brewer desires to engage in any of the [foregoing]activities IN PARAGRAPH (A), (B), (C), (D) OR (E) OF THIS SUBDIVISION which (a) require the use of by-products or wastage from the production of beer, or utilize buildings, room-areas or equipment not fully employed in the production of beer; or (b) are reasonably necessary to realize the maxi- mum benefit from the premises and equipment and to reduce the overhead of the brewery; or (c) are in the public interest because of emergency conditions; or (d) involve experiments or research projects related to equipment, materials, processes, products, by-products or wastage of the brewery, he shall submit an application so to do to the liquor authori- ty, on forms prescribed and furnished by it. If the authority determinesEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15733-01-0 S. 6970 2
that the activities specified in the application will not impede the effective administration of the alcoholic beverage control law, it may approve such application, subject to such restrictions or modifications, and in such manner and form as it may determine, and no brewer licensed under this chapter shall engage in any such activities without the prior approval of the authority. PROVIDED, HOWEVER, IF THE LICENSED BREWER DESIRES TO ENGAGE IN ANY ACTIVITIES IDENTIFIED IN PARAGRAPH (F) OR (G) OF THIS SUBDIVISION THE LICENSEE SHALL SUBMIT AN APPLICATION TO DO SO TO THE LIQUOR AUTHORITY, ON FORMS PRESCRIBED AND FURNISHED BY IT. IF THE AUTHORITY DETERMINES THAT THE ACTIVITIES SPECIFIED IN THE APPLICATION WILL NOT IMPEDE THE EFFECTIVE ADMINISTRATION OF THIS CHAPTER, IT MAY APPROVE SUCH APPLICATION, SUBJECT TO SUCH RESTRICTIONS OR MODIFICATIONS, AND IN SUCH MANNER AND FORM AS IT MAY DETERMINE. THE APPROVAL OF SUCH APPLICATION SHALL BE SUBJECT TO THE IMPOSITION OF SUCH ADDITIONAL LICENSE FEES FOR SUCH ACTIVITIES IDENTIFIED IN PARAGRAPH (G) OF THIS SUBDIVISION CONSISTENT WITH THE MANUFACTURE OF ANY ALCOHOLIC BEVERAGES UNDER THIS ARTICLE AND ARTICLES FIVE AND SIX OF THIS CHAPTER. The liquor authority is hereby authorized to adopt such rules and regulations as it may determine necessary to effectuate the provisions of this subdivi- sion. S 2. This act shall take effect immediately.