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Committee clears bill allowing limited direct sales from microbreweries to nearby restaurants

CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE · February 28, 2023
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Summary

HB 1021 would allow microbreweries to sell limited quantities directly to local restaurants without going through a wholesaler; sponsor said the measure includes an annual per‑barrel cap agreed with distributors (discussed in committee as 5,000 barrels), and ABC explained federal and state approval processes for beverage analysis and labeling.

Representative John Maddox (House District 86) presented House Bill 1021, which he described as a targeted fix to allow microbreweries in isolated areas to sell directly to nearby restaurants when wholesalers are not feasible partners. He told the committee the bill was crafted with distributor input and includes an annual per‑barrel limit to prevent undermining wholesalers' business models.

Committee members asked about product testing and oversight. Michael Lewis, interim director at the state Alcoholic Beverage Control office, explained that alcoholic products must receive federal review from the Tobacco Tax and Trade Bureau for label analysis and then state ABC reviews that information and approves products for distribution; ABC also analyzes ABV and base type (malt, spirit, wine).

During Q&A, a committee member referenced a 5,000 barrels‑per‑year quantity when asking about wholesalers’ quantity thresholds; proponents said any microbrewery could sell up to the annual limit agreed in legislation and that sales could cross county lines within that limit.

Senator McKee moved passage, Senator Bryant seconded, and the committee approved HB 1021 by voice vote. The transcript does not include the exact statutory text of the annual cap or a printed fiscal note in the hearing record; those details are to be verified in the bill text and fiscal analysis.