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Committee approves measure to let microdistillers sell directly to licensed retailers

CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE · April 8, 2021
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Summary

The committee passed House Bill 17‑63 to raise production ceilings for microdistillers and allow them to sell directly to licensed retailers before distributors must be used; sponsors said the change aids small businesses that produced sanitizer during the pandemic and need parity with microbrewers.

Representative Craig Christiansen presented House Bill 17‑63, saying the bill raises the production ceiling for microdistillers and permits them to sell directly to licensed retailers (liquor stores) prior to distributor involvement. Christiansen emphasized that the bill does not permit shipment into dry counties and that the changes were negotiated with retailers and distributors to avoid disrupting the existing three‑tier system.

Owners of small distilleries testified in favor. Danny Bradley of Crystal Ridge Distillery said his business pivoted to produce hand sanitizer during the COVID pandemic and remains too small for distributors; he said direct access to retail shelves would allow controlled, incremental growth. Ross Jones of Postmaster Spirits described how limited direct sales had generated significantly more countertop revenue for his operation and argued the change would help preserve small local producers.

Committee members clarified the bill’s limits (it does not authorize sales into dry counties). After testimony and brief questioning, a motion to pass the bill was made and seconded; the committee approved HB17‑63 by voice vote.