House bills would promote microbrewers

A bill backed by the Montana Tavern Association, the Montana Brewers Association and several other industry groups has been introduced to the legislature in an attempt to support the state’s growing microbrewing industry. The coalition supporting the bill includes 15 members and the state’s Alcohol Control Division.

Montana has seen a surge of interest in microbreweries. Locally, Kalispell Brewing Co. opened on Main Street in Kalispell in May 2014, Flathead Lake Brewing Co. opened a new facility in Bigfork in January, and Backslope Brewing plans to open for business in Columbia Falls in time for the summer tourist season.

House Bill 326, the 2015 Montana Brewers Act, was introduced by Rep. Pat Noonan, D-Anaconda, on Jan. 27.

“This bill is a commonsense solution that allows the craft brewing industry to become an even greater point of pride than it already is in our communities and our state,” Noonan said. “This bill will provide a boost to the Montana economy by providing brewers with clear paths to grow and expand their businesses, grow jobs and produce more beer for in-state and out-of-state distribution.”

According to HB 326, a brewery that wants to purchase a retail beer or all-beverage license can do so, but the license must be co-located with the brewery. Once the license is established, the brewery can purchase and hold up to two more retail on-premise licenses.

At the same time, a business that holds a retail beer or all-beverage license can open a brewery. Once the brewery is co-located, the business holding the license can open additional breweries, but the business cannot own more than three on-premise retail licenses.

A brewery that produces more than 10,000 barrels per year but less than 60,000 may operate a sample room limited to 500 barrels of on-premise consumption per year. Current law limits sample rooms to breweries that produce less than 10,000 barrels.

The Montana Beer and Wine Distributors Association, representing 22 beer and wine distributors across the state, makes up the only opposition to the bill.

The association initially belonged to the coalition backing the bill, but it pulled out in December 2014 because of concerns about how the bill might impact the state’s existing three-tier alcohol regulating system.

The association backs House Bill 336, introduced by Rep. David Moore, R-Missoula, which would allow microbreweries with tap rooms to increase production from 10,000 barrels a year to 60,000 barrels. The idea is to help microbreweries grow without disrupting existing alcohol regulations.

Kristi Blazer, the association’s executive director, said small Montana breweries should be allowed to grow “without playing favorites to certain licensees, without the expense of others and without damaging a system on which so many family businesses have been built.”

Both bills were referred to the House Business and Labor Committee, and hearings were scheduled for Feb. 6.