Wisconsin Bill Would Create New Alcohol Division; Makes 20+ Changes to Existing Law
An assembly hearing is scheduled today in Wisconsin for a 156-page bill which would make more than 20 changes to the Badger State’s alcohol laws, including expanded retail allowances for breweries.
Assembly Bill 304, introduced last week by several Republican lawmakers, would create a division of alcoholic beverages within Wisconsin’s Department of Revenue, which would appoint “special agents” to oversee related permitting, auditing, education and enforcement, the Milwaukee Journal Sentinel reported.
The bill also modernizes several of Wisconsin’s laws, including adding guidance for contract brewing, which does not exist in existing law. The bill would also allow beer, wine and spirits producers to operate retail shops without on-site production.
Additionally, the bill doubles the limit of fermented malt beverages a brewpub can produce annually from 10,000 barrels to 20,000 barrels, and the amount it can self-distribute from 1,000 barrels to 2,000 barrels.
Other changes include:
- Expanding brewery, winery and manufacturer abilities to give free samples at retail locations;
- Changing the definition of fermented malt beverages to “any beverage that is recognized under federal regulations as beer, except sake or similar products;”
- Amending bev-alc investment restrictions, which prohibit members of one category of bev-alc from investing in a new business in another tier of the industry. These “restricted investors” could now invest in up to 10% of a new bev-alc related business.
More changes can be read here.
New Jersey Craft Breweries One Step Closer to Eased Taproom Restrictions
New Jersey breweries could get some relief on special conditions implemented last summer, which limit their ability to host events and serve food in their taprooms.
Both the state’s Assembly and Senate have advanced bills in the past few weeks, combating conditions that the Brewers Guild of New Jersey (BGNJ) has described as “extremely problematic,” TAPinto Bloomfield reported.
New Jersey craft breweries are subject to license conditions passed in 2018. Those conditions were put into effect in 2019, but were largely unenforced until July 1, 2022, due to the COVID-19 pandemic. Included in the conditions were restrictions on to-go beer sales, the barring of breweries from operating a restaurant or selling food – including partnering with food trucks – and limiting brewery events – including trivia, yoga and open mic nights – to 25 per year.
New Jersey lawmakers are attempting to ease some of these restrictions following outcry from craft breweries.
The state’s senate advanced S.B. 3038 to the Senate Budget and Appropriations Committee on Monday. The bill allows craft breweries to host food trucks and food vendors on-site and sell packaged snacks and coffee.
Additionally, the bill allows license holders to host an unlimited number of “on-premises special events,” including, but not limited to, trivia, pop-up shops, live music, televised sporting events and exercise classes.
A similar bill (A-4630) passed through the New Jersey Assembly on May 25.
The BGNJ is encouraging the state Legislature and Gov. Phil Murphy to pass a bill before July 1, when existing regulations automatically renew.
“The potential of brewery closures statewide is real,” the BGNJ wrote on its website. “With some breweries’ revenues down as much as 40% over the last year directly due to these restrictions, another year under these arbitrary limits would spell doom for many craft breweries.
“Overall, S-3038/A-4630 will give breweries a set of specific rights and privileges, which mirror those allowed for our competitors in border states where their respective craft beer industries have flourished, not been hampered, because of their states’ craft beer laws,” the guild continued.
Illinois Passes Emergency Order Restricting Crossover Beverage Placements
Illinois’ Liquor Control Commission (ILCC) filed an emergency rule late last month (May 26) that restricts placements for “co-branded alcoholic beverages” – bev-alc offerings with similar branding, logos for packaging to non-alcoholic beverages.
The emergency rule prohibits large retail sales floors (2,500 sq. ft. or more) from displaying co-branded products, a.k.a. crossover products – such as Hard MTN Dew and Sunny D Vodka Seltzer – “immediately adjacent to soft drinks, fruits juices, bottled water, candy or snack foods portraying cartoons or youth-oriented photos,” according to a press release.
Retail floors less than 2,500 sq. ft. must either do the same, or “post clear signage on every display that contains co-branded alcoholic beverages.”
“Mistaking alcoholic beverages for non-alcoholic beverages is especially dangerous for those under the age of 21 and individuals with alcohol use disorders,” Illinois Liquor Control Commission executive director Lisa Gardner said in the release. “This emergency rule aims to safeguard public health by preventing product confusion and prohibiting alcoholic beverage marketing that appeals to children.”
The emergency ruling expires October 23.
Virginia Gov. Glenn Youngkin passed similar restrictions in March that will go into effect July 1. The law prohibits retailers from placing alcoholic products “in an area immediately adjacent to non-alcoholic beverages containing the same or similar brand name, logo or packaging.”
Virginia retailers must also post “clearly visible” signage that “indicates the product is an alcoholic beverage.”
Illinois Cocktails To-Go Extended for 5 Years
Illinois Gov. J.B. Pritzker has also signed S.B. 89, extending the sale and delivery of cocktails to-go until August 1, 2028.
The state’s existing law – first enacted during the pandemic to help bars and restaurants – was scheduled to expire June 1.
Since 2020, 20 states and Washington, D.C., have implemented laws permanently allowing cocktails to-go, while 14 states have passed temporary allowances, according to the Distilled Spirits Council of the United States (DISCUS). Maryland, Tennessee and Vermont each have temporary allowances expiring within the next month.
Oklahoma Breweries Now Able to Sell Beer Off-Site
Oklahoma Gov. Kevin Stitt signed a bill into law last week, allowing off-site sales of beer, wine and spirits, KRMG reported.
The previous law only allowed breweries to sell beer at taprooms and at licensed retailers. Now, producers can sell bev-alc products at off-site events such as farmers markets, fairs and swap meets.
Additionally, the law allows licensed vendors to host four off-site events per year.