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Committee raises gallon cap and event limits for artisan distillers, clears bill unanimously
Summary
Senate Bill 109, which increases the production cap for artisan distilleries from 20,000 to 30,000 gallons and raises allowable trade-show/exposition participation from 45 to 60 events per year, passed committee 9-0 after supporters said it aids small businesses.
The Indiana Senate Public Policy Committee amended and passed Senate Bill 109 by a 9-0 vote, increasing limits for artisan distillers and expanding permissible participation in trade shows and expositions for farm wineries and craft manufacturers.
Amendment 1 raised the production cap for artisan distilleries from 20,000 gallons to 30,000 gallons and increased the number of trade-show or exposition events a farm winery permit holder can attend from 45 days to 60 events in a calendar year. Committee members said the changes are gradual adjustments to avoid unintentionally converting craft operations into full commercial producers.
John Willey of the Distillers Guild of Indiana testified in support, thanking committee members for the incremental approach. “We wholeheartedly support because we think those small changes make a big difference to these small companies here in the state,” Willey said.
Representatives of wine and spirit wholesalers raised concerns about expanding self-distribution thresholds. Jim Purreker, representing wine and spirit distributors of Indiana, opposed the provision that would increase the self-distribution limit, warning that larger self-distribution allowances could invite litigation (he cited the Granholm U.S. Supreme Court decision in general terms) and complicate the three-tier distribution system. Purreker recommended careful limits to protect the role of wholesalers and tax collection and enforcement functions.
Committee members said they are aiming for a balance between supporting small craft producers and preserving the state’s distribution system; the amended bill was approved and will move forward.
