Lawmakers hear from nano distillers and Liquor Commission on HB 16‑73

Representative Calvin Boleyer opened the committee hearing on HB 16‑73 by saying the bill is intended to ‘start a conversation’ about how very small distillers — sometimes operating out of 50 square feet — can sell tiny runs of spirits in collaboration with restaurants and bars. “My intention was not to blow a $2,600,000 hole in state liquor revenues,” Boleyer said, adding he would work to keep the measure revenue‑neutral while allowing small producers to access on‑premise sales.

Distillers and a restaurant‑owner/manufacturer, Chris Shepherd of Groveton, later told the committee that current rules force them to package small quantities and drive them to the bonded warehouse in Bow, a round trip that can take four hours for a North Country producer. Shepherd described his operation — “my distillery is 5 feet by 10 feet” — and asked for an administrative path to move “two or three cases” a short distance to his adjacent restaurant’s bar.

Liquor Commission Lieutenant Matthew Culver told the panel the bill as drafted could permit all 17 liquor manufacturers in the state to sell directly to on‑premise accounts, and flagged a fiscal worksheet that estimates a possible revenue reduction if widespread direct sales occur. He also pointed out drafting ambiguity that could let on‑premise accounts sell product in closed bottles for off‑premise consumption, which he said he did not believe was the sponsor’s intent.

Committee members pressed on technical points: whether the bill would bypass the bonded warehouse system, whether a new fee or tax would be needed for self‑distribution, and what a de‑minimis production threshold should be. Several members and the Liquor Commission suggested a narrowly tailored exception limited to on‑premise consumption and a low production cap; Boleyer said the 3,009‑liter language in current law came from OLS and could be revised much lower to reflect true nano production.

The committee did not vote on HB 16‑73 at this hearing; staff and agencies agreed to work with the sponsor on drafting to ensure reporting and tax parity and to define a practical de‑minimis threshold before the bill moves forward.