Proposed Statutory Changes for Michigan Breweries

Posted on May 17, 2013

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A very brief post on three recent bills and their possible implications:

Late last week, three separate bills dealing with Breweries, Micro breweries, and Brewpubs were introduced in the Michigan House

HB 4709:  This bill would increase the barrel limit for micro breweries from 30,000 bbls per year to 60,000 bbls per year.

HB 4710:  Currently, a brewpub may only have an interest in two other brewpubs, all of which have a combined production of no more than 5,000 bbls per year.  This bill would permit a brewpub to hold an interest in up to 5 other brewpubs, which have a combined production of no more than 18,000 bbls per year.

HB 4711: Currently, a brewer may only sell its beer for on-premise consumption from one licensed brewing facility.  This bill would permit a brewery to sell from two of its licensed brewing facilities.  Furthermore, it would explicitly permit brewers to sell beer brewed at one licensed brewing facility in a taproom at another of its licensed brewing facilities.

What makes these bills blog worthy?  They show that the legislature is taking a distinct interest in Michigan’s beer manufacturers.  In 2012, Michigan beer manufacturing directly contributed over $130,000,000 to Michigan’s economy.  The indirect impact is certainly much greater.  Under current law, various limitations impede the growth of existing beer manufacturers in one form or another.  These bills, if passed, would remove some of those roadblocks, promoting further growth of existing manufacturers.  When examined in a vacuum, these bills may seem relatively insignificant.  From our perspective, however, these bills signify that the legislature is taking the role of Michigan’s beverage alcohol industry on the state economy very seriously.  If that is in fact the case, we would expect that the near future will bring many more changes aimed at promoting the growth of this industry.

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*This information and thoughts herein are provided by the Liquor Lawyers at Stariha & Brower, PLC.  As always, we remind readers that the materials on this site are provided purely for informational purposes and are not legal advice. These materials are intended, but not promised or guaranteed, to be correct, complete, and current. This blog is not intended to be a source of legal advice. Therefore, the reader should not consider this information an invitation for an attorney-client relationship. Readers should always seek the advice of competent counsel.

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