NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1100B
SPONSOR: Magee (MS) TITLE OF BILL: An act to amend the alcoholic beverage control law, in
relation to beer centers, cider centers and incubator wine centers
PURPOSE:
The purpose of this bill is to create a regulatory mechanism so that
custom beermakers' centers, custom cidermakers' centers, and custom
vvinemakers' centers (collectively "custom centers") can be established
in this State and facilitate the ability of individuals to share space,
equipment, and storage to produce quality beer, cider, and wine for home
consumption, and not for sale or resale, as is currently allowed for
under federal regulations.
SUMMARY OF PROVISIONS:
Section 1: Amends the ABC Law section 3 to add definitions for "custom
beermakers' center", "custom cidermakers' center", and "custom winemak-
ers' center".
Section 2: Adds ABC Law section 52 to create a new custom beermakers'
center license that authorizes the operation of a custom beermakers'
center facility to provide individuals with rental space (to make and
store homemade beer), the use of equipment and storage facilities,
and/or beer making supplies for the production of beer for personal
household use and not for commercial use or resale purposes. It defines
beer making supplies as products grown or produced in New York in quan-
tity amounts as determined by the State Liquor Authority. A custom
beermakers' center licensee would be authorized, if permitted by the
Federal Alcohol and Tobacco Tax and Trade Bureau, (TTB) to conduct
training classes on how to manufacture beer and conduct certain tastings
of beer produced on the premises.
Section 3: Provides an annual fee of $320 for custom beermakers' center
license.
Section 4: Provides for filing fees and refunds.
Section 5: Adds a new ABC Law section 58-d to create a new custom cider-
makers' center license that authorizes the operation of a custom cider-
makers' center facility to provide individuals with rental space (to
make homemade wines), the use of equipment and storage facilities,
and/or fruit for the production of cider for personal household use and
not for resale purposes. It defines fruit as apples or other pome fruits
that are grown or produced in New York. A custom cider center licensee
would be authorized, if permitted by the Federal TTB, to conduct train-
ing classes on how to manufacture cider and conduct certain tastings of
cider produced on the premises. The annual fee for an incubator beer
center license is $320.
Section 6: Adds a new ABC Law section 77 to create a new custom winemak-
ers' center license that authorizes the operation of a custom winemak-
ers' center facility to provide individuals with rental space, the use
of equipment and storage facilities, and/or fruit for the production of
wine for personal household use and not for resale purposes. It defines
fruit as products grown or produced in New York. A custom winemakers'
center licensee would be authorized, if permitted by the Federal TTB, to
conduct training classes on how to manufacture wine and conduct certain
tastings of wine produced on the premises.
Section 7: Amends ABC Law section 83 to provide an annual fee of $320
for a custom winemakers' center license.
Section 8 provides an effective date.
EXISTING LAW:
Federal law deems that the home production of limited amounts of beer,
cider, and wine, for home and personal consumption, to be exempt from
federal licensing and registration requirements and taxation (i.e. it
does not need to be produced by a bonded facility). Many states have
adopted laws to allow for such custom beer/cider/winemakers' 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 custom beer/cider/winemakers' centers
for them to be allowed to exist in this state.
JUSTIFICATION:
This bill should help to facilitate the production of homemade beer,
cider and wine. It encourages production of these beverages by allowing
licensees to operate a licensed facility where individuals can rent
space, equipment, and storage facilities to manufacture them for
personal consumption. Further, assistance could be provided to these
hobbyist beer, cider, and wine makers. This lowers the overhead costs
for home or personal production and provides space for enthusiasts who
do not have room where they live to produce homemade beer/cider or wine.
In addition, such custom centers can conduct training courses on how to
produce beer, cider, or wines. By providing these courses, as well as
any ingredients that may be needed, the custom centers would increase
the demand for locally grown fruits and beer ingredients, providing
additional markets for New York farmers.
For many urban and suburban residents, they often do not have appropri-
ate space to make homemade beer, cider, or wine in their homes or apart-
ments and purchasing equipment is cost prohibitive. Establishing the
custom beer, cider or wine makers' centers would provide the kinds of
facilities that these residents need. Such centers could also be located
in villages and towns that are near local fruit farms or in cities,
where there is a growing interest in producing homemade beer, cider, and
wine.
In addition, this bill may help to encourage expansion of the grape and
other fruit growing industries, as well as hops and barley in this
State. This is because it would increase the demand for locally grown
New York agricultural products. 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,
economic activity could be generated from the sale of beer, cider, and
wine making supplies and leasing space for the making of homemade
products.
Further, by encouraging such custom beer, cider, or winemakers' centers
to use locally grown or produced products, this may increase the demand
for, and sales of, New York's commercially produced alcohol because they
use the same products as these custom centers will use.
It is hoped that by increasing the number of custom beer, cider and
winemakers' centers, this will increase the "talent pool" of beer,
cider, and wine makers available for employment in commercial facili-
ties. Many home producers have "graduated" to working either full-time
or part-time in already established commercial facilities. Further,
some of these hobbyist alcoholic beverage makers have even gone on to
establish their own breweries, cideries, and wineries to sell their
products commercially. It is important to increase the overall skill and
experience of beer, cider, and wine makers available for employment in
this growing industry.
Another benefit of this bill is to authorize current licensed manufac-
turers to establish ancillary businesses to increase their overall
profit margin. By enacting this bill into law, breweries, cideries, and
wineries could increase the utilization of their otherwise idle equip-
ment and facilities, increase sales of New York State products that are
grown locally, but are not being utilized by commercial operations, and
collect rent for their underutilized space within their facilities to
individuals wishing to use a custom beer, cider or winemakers' center.
FISCAL IMPLICATIONS:
None.
LOCAL FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
180 days after it shall have become law.
