HLS 22RS-815 REENGROSSED 2022 Regular Session HOUSE BILL NO. 554 BY REPRESENTATIVE MINCEY ALCOHOLIC BEVERAGES: Provides relative to microbrewery operations 1 AN ACT 2To amend and reenact R.S. 26:241(17), 271(A)(5), and 271.1, relative to microbrewery 3 operations; to provide for definitions; to provide relative to permitting; to provide 4 relative to wholesale limited sales; to provide relative to taxation; and to provide for 5 related matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 26:241(17), 271(A)(5), and 271.1 are hereby amended and reenacted 8to read as follows: 9 §241. Definitions 10 * * * 11 (17) "Microbrewery" means a retail establishment wherein beer and other 12 malt beverages are brewed in small quantities, not to exceed twelve thousand five 13 hundred barrels per year, and where such beverages are sold at retail for consumption 14 on or off the licensed premises or at wholesale in accordance with R.S. 26:271.1. 15 * * * 16 §271. Permits required; fees 17 A. Before engaging in the business of dealing in malt beverages or beverages 18 of low alcoholic content, all manufacturers, wholesale and retail dealers, and 19 microbrewers shall obtain from the commissioner, according to established rules and 20 regulations, a permit to conduct each separate manufacturing, wholesale, retail, or Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-815 REENGROSSED HB NO. 554 1 microbrewery business and shall pay for each permit a fee not to exceed the amounts 2 provided for in the following schedule and in accordance with regulations 3 promulgated pursuant to the provisions of the Administrative Procedure Act for each 4 year the permit is valid: 5 * * * 6 (5) Microbrewer, which authorizes the holder of a Retailers, Class A permit 7 to engage in the brewing of beer and other malt beverages at a single location in an 8 amount not to exceed twelve thousand five hundred barrels, and which further 9 authorizes the sale at retail of such brewed beverages from that location or at 10 wholesale in accordance with R.S. 26:271.1 – one thousand dollars. 11 * * * 12 §271.1. Microbrewery; retail sales on or off premises and limited sales at wholesale 13 A. Any person who has properly obtained a Class A retail permit and a 14 microbrewer's permit as provided for in R.S. 26:271, shall be authorized to engage 15 in the brewing of beer and other malt beverages in a quantity not to exceed twelve 16 thousand five hundred barrels during the licensed year. The holder of such permit 17 shall also be authorized to sell the manufactured beverages at retail for consumption 18 on or off the licensed premises, if the holder also has been issued a Retailer, Class 19 A permit. 20 B. The provisions of this Section shall not authorize the holder of a 21 microbrewer's permit to sell the manufactured beverages at wholesale. 22 Notwithstanding any provision of this Chapter to the contrary, a microbrewer may 23 contract with a licensed wholesaler in accordance with R.S. 26:801 et seq. for the 24 purpose of distributing the products brewed by the microbrewer at its licensed 25 premises to other retail dealers licensed pursuant to this Chapter and to special events 26 licensed pursuant to R.S. 26:793. 27 C. Beverages produced by a microbrewer shall be taxed in the same manner 28 and at the same rate as beverages produced by other breweries, as provided by law. Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-815 REENGROSSED HB NO. 554 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 554 Reengrossed 2022 Regular Session Mincey Abstract: Provides relative to microbrewery operations and limited sales at wholesale. Present law (R.S. 26:241) defines "microbrewery" as a retail establishment where beer and other malt beverages are brewed in small quantities, not exceeding 12,500 barrels per year, and where such beverages are sold for consumption on or off the licensed premises. Proposed law changes present law to apply to beverages sold on or off the licensed premises or at wholesale in accordance with proposed law (R.S. 26:271.1). Present law (R.S. 26:271) provides for permits and fees. Present law provides that microbrewers with a Retailers, Class A permit, are authorized to engage in the brewing of beer and other malt beverages at a single location in an amount not to exceed 12,500 barrels. Present law further authorizes the sale of such brewed beverages from that location. Proposed law changes present law to authorize the sale of such brewed beverages from a single location or at wholesale in accordance with present law (R.S. 26:271.1). Present law (R.S. 26:271.1) provides that any person who has obtained a microbrewer's permit as provided in present law (R.S. 26:271) shall be authorized to engage in the brewing of beer and other malt beverages in a quantity not to exceed 12,500 barrels during the licensed years. The holder shall also be authorized to sell the manufactured beverages at retail for consumption on or off the licensed premises if the holder has also been issued a Retailer, Class A permit. Present law further provides that the holder of a microbrewer's permit is not permitted to sell the manufactured beverages at wholesale. Proposed law changes present law to provide that any person who has properly obtained a Class A retail permit and a microbrewer's permit is authorized to sell the manufactured beverages at retail on or off the licensed premises. Present law provides that present law shall not authorize the holder of a microbrewer's permit to sell the manufactured beverages at wholesale. Proposed law authorizes a microbrewer to contract with a licensed wholesaler in accordance with present law (R.S. 26:801 et seq.) for the purpose of distributing the products brewed by the microbrewer at its licensed premises to other retail dealers licensed pursuant to present law and to special events licensed pursuant to present law (R.S. 26:793). (Amends R.S. 26:241(17), 271(A)(5), and 271.1) Summary of Amendments Adopted by House The House Floor Amendments to the engrossed bill: 1. Make technical changes. 2. Remove provision that provides that a microbrewer may sell up to 250 barrels of its finished products per month at wholesale to other retail dealers licensed pursuant to present law and to special events licensed pursuant to R.S. 26:793. Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-815 REENGROSSED HB NO. 554 3. Add provision that allows microbrewers to contract with a licensed wholesaler in accordance with present law (R.S. 26:801 et seq.) for the purpose of distributing products brewed by the microbrewer at its licensed premises. Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions.