NEW NEW YORK LEGISLATION

[Jonathan Forester]

Ralph- do you have a link to that info?

Thanks

jonathan

The NEW YORK STATE LAW REVISION COMMISSION has just released part two of their comprehensive study of NY Alcohol Beverage Control Law and the State Liquor Authority. It is available on the COMMISSION's site. It is lengthy and covers the entire range of alcohol related interests. But for the new distiller intending to operate in NY, it should be required reading; at least those sections dealing with Winery, Brewery and Distillery laws.

It should be a major concern of small producers in NY and at the top of the agenda for the next meeting of the NY CRAFT DISTILLERS GUILD.

[Ralph at Tuthilltown]

The link to the Reports section of the NEW YORK LAW REVISION COMMISSION link:

http://www.lawrevision.state.ny.us/abcls.php

Suggest reading the PRELIMINARY REPORT first, it is shorter and identifies the problems uncovered by the investigation of the Commission. The FINAL REPORT is lengthy and deals with issues mainly not of interest to distillers. But the sections on revision recommendations for Wineries, Breweries and Distilleries (Distillery section the smallest section) are important.

Now of course, the question is: "Will the New York State Legislature act on the report?"

Squaring the Alcohol Beverage Control laws of New York is one way to increase revenue to the State, create jobs and simplify the administration and enforcement for the State Liquor Authority.

I am certain the report and recommendations of the Commission will get no any attention without a deliberate cooperative effort of the Producers as a group insisting their Legislators take action.

[Ralph at Tuthilltown]

From the Camels' mouths.....

At VITICULTURE 2010 in snowy cold Rochester. In a seminar Wednesday attended mainly by Farm Winery operators looking at starting a Farm Distillery on their winery premises, the TTB and the Chief Counsel from the NYS SLA addressed some interesting issues. They were describing to the would be distillers what would be necessary for them to comply with Fed and State Law. One slide during the TTB presentation became an issue. It detailed where a distillery may NOT be located under Fed law. Among the places listed were: where wine is produced and sold. The SLA Counsel subsequently addressed issues on the State level. I asked him if I was incorrect, based on the CFR, that every winery in NY that all Farm Wineries in NY State that acquired a Federal permit to distill and started a NY State Farm Distillery would be in violation of the Federal Code. His response, looking at the representative of the TTB, "Yes." It's a State's Rights issue after all is said and done, analogous to Medical Marijuana in California; legal for medical use, legal to grow and sell with a permit from the State, but illegal at the Federal level. The fact is that many States have laws which contradict Federal Code. We can only hope the US Attorney General would take the same posture on distillery/winery contradictions as he has recently struck on the Medical Marijuana issue, choosing not to prosecute anyone who is in that biz and licensed by the State.

Another issue which arose was the mistake in the wording of the recent amendment to the Farm Winery Law in NY, which permits Farm Wineries to sell "New York State branded liquors" and offer consumers samples at the Farm Winery. A Farm Distillery may only sell New York spirits to Farm Wineries "in bulk", but may not sell it in sealed bottles. And the Farm Winery may only sell New York branded spirits it buys from all but the Farm Distilleries. So a Farm Distillery's products may not be sold on the shelves of a Farm Winery, though spirits made from non-NY raw materials may be sold at the Farm Winery. And the Farm Distillery may sell NYS branded spirits at the Farm Distillery, but if that distiller holds a A-1 Distiller license, consumer sales may not include those goods produced under the A-1 license.

Okay now the good (fingers crossed) news. The SLA Counsel announced he was in the middle of the work of re-writing the NYS Alcohol Beverage Control Law using the recommendations of the State Law Revision Commission, whose final report was released in December. The draft of the new law will be online for comment upon submission to the Legislature. In a conversation with the Counsel after the seminar he told me he was using the recent proposal from Ag and Markets (for the assignment of all winery regulation be passed to the Department of Ag and Markets) as a form for shifting the Production side of regulation of wineries AND distilleries to Ag and Markets. Under this scenario the SLA comes into play when the goods leave the place of production.

My suggestion, keep close to the proposals coming into play at the State level. Proceed as you are (legally). Contact your State Legislator and push them all to support total revision of ABC law as per the reports of the Law Revision Commission and most importantly, urge Legislators to include the producers in the process of composing new law to regulate them.

[Ralph at Tuthilltown]

Update on New York Legislative and Regulatory undertakings.

Working through Assemblyman Cahill's office, we are lobbying the SLA to permit FARM DISTILLERIES to offer sampling and sales (for off premise consumption) at Farm Markets, Greenmarkets, the upcoming NYS Harvest Fest and various other events off site, similar to the opportunities enjoyed by the wineries and brewers in New York State.

Assemblyman Cahill's office informed us the Chief Counsel of the SLA directed us to the Statute: 99-B1K of ABC Law which reads (excerpt of pertinent part):

1.The liquor authority is hereby authorized to issue a permit to:

k. A person to purchase, receive or sell alcoholic beverages or receipts, certificates, contracts or other documents pertaining to alcoholic beverages, in cases not expressly provided for by this chapter, when in the judgment of the liquor authority it would be appropriate and consistent with the purpose of this chapter.

The SLA noted that it is possible to acquire a single annual permit, rather than requiring producers to apply for each individual event. However, the application which is available on the SLA website under SPECIAL PERMITS in the QUICK FORMS FIND section, is obviously geared to the single stand alone permit for a single event; asking for such info as: site plan, menu, producer, type of event, number of attendees. All these have only one answer for the annual permit: "Various". It is a certainty, at this point, filling out the form with the word "Various" in response to these types of questions will result in a Rejection of the application.

Contacting the SLA office to inquire how to proceed I was informed the issue is indeed not settled. The statute is unclear on spirits sampling by Farm Wineries, though the Farm Winery license permits the Farm Winery to sample and sell NY State Branded spirits and in our opinion should also extend to off site event participation, per the initial response of the SLA Chief Counsel. We have recently acquired our NYS Farm Winery license since Farm Wineries have broader latitude in what the winery can sell at the winery tasting room (specifically NY State branded spirits) than the Farm or the A-1 Distilleries enjoy.

This is being explored now. Stay tuned. The ability to sample and sell NY State branded spirits at farm markets and greenmarkets and fairs including those County and State fairs provides the new Farm Distiller an opportunity to introduce regional NY State products to the general public. It is also, and more importantly in the big picture, another step in leveling the playing field among NY State Alcoholic Beverage Producers. It is our position there may be no discrimination among the three categories of agricultural alcohol producers. Alcohol is alcohol, regardless of proof or source.

Ralph Erenzo

Tuthilltown Spirits

[delaware_phoenix]

Then plain Jane (non-farm) micro-distilleries should be allowed to give tastings and have direct sales as well.

I think it shows the complete silliness of the NY ABC law that a distillery needs to get like three different licenses. That's a joke.

[Ralph at Tuthilltown]

CONTACT YOUR NEW YORK STATE LEGISLATORS AND DEMAND A VOICE IN THE ABC REVISION.

Delaware Phoenix is 100% correct that it's a joke we are required to acquire FIVE licenses to sell our goods: A-1, DD, Wholesale Distributor, Farm winery and now an Ag and Markets permit to use the farm raw materials WE ARE GROWING as part of our own Farm Operation (the Agency considers us a "middleman" since we process the goods, though they are own own ag raw materials).

The law is being rewritten NOW! Contact your Legislator and ask them why we are all not being included in the rewrite or even permitted to see the draft till the Public Hearing. Squawk!!

[Ralph at Tuthilltown]

SAMPLING AND SELLING OFF PREMISES EVENTS

The recent change in the NYS Farm Winery law extends the permission to sample and sell New York State spirits at Farm Markets and State Fairs and any other off premises event. A Farm Distillery or A-1 distiller may apply for a Farm Winery permit. Once you have the Farm Winery permit and you have also a wholesale permit, you may apply to the SLA under MISC PERMITS in the "fast form find" section on the SLA site and apply for the "SUPPLIER PERMIT" under MISCELLANEOUS PERMITs, Form 1013. This is the application for a permit to pour and sell at off premises events. You will need to include your WHOLESALE permit (copy). There is a second page to this permit with the INSTRUCTIONS for filing. Read it carefully to understand exactly which questions to answer.

In a discussion with the SLA Licensing office, the agent explained this is also the application for the Annual Permit.

This is a major step forward to Farm Distilleries in New York. Never before have distilleries had the ability to sample and sell off site alongside their winery and brewery cousins. It's a pain to get the Farm Winery permit since the SLA will require the applicant to complete the entire application as though starting from scratch, regardless if you have all the info on file already; don't try to make sense of that, it's easier to just file the paperwork and keep it uncomplicated (though that may seem to be a contradictory comment).

R