House Bill 326

Posted On February 7, 2015

The House Business and Labor Committee met on Friday and took up brewery bills. HB326 by Rep. Pat Noonan is the bill endorsed by the Montana Brewers Association and will provide the brewing industry with new choices that they have never had before. Brewers can operate as they currently do, grow above the current 10,000 barrel limit, and co-locate retail licenses at their breweries, if they choose.

This bill is preferable to HB336 (the beer fairness act) which only lifts the 10,000 barrel limit, was not an agreed to approach though the coalition of industry members (including the MBA), and adds other unneeded technical provisions by distributors. It is disingenuous on the part of distributors for them to now, suddenly, become supporters of lifting this limit, when they have long objected to our desire for change here, including in the coalition meetings. Distributors want no change whatsoever!.  This is because so long as brewers and retailers are fighting one another, distributors are standing in tall cotton. And the brewers and the consuming public loses.

HB326 is the Best Solution for Brewers because:

• It is the compromise solution hammered out by industry members during the past 18 months to give brewers choices in order to grow their businesses.
• It maintains the current operating factors for brewers to operate and grow under current law, and for new brewers to enter the market. Breweries can continue to operate just as they are, if they choose.  Retailers are done fighting us over our tap rooms.
• It will lift the current 10,000 barrel cap in sample rooms to 60,000 barrels, clearing a major hurdle for brewers growing above this level. It provides that brewers growing over 10,000 barrels maintain modest tap rooms, with sales up to 500 barrels.
• It allows brewers to own retail licenses, and retailers to own breweries, but limits the ownership to 3 retail licenses (one must be co-located at a brewery). Therefore, large chains may not set up vertical monopolies, and any current owner of more than 3 retail licenses may not co-locate a brewery.
• It will not collapse the 3-Tier System. Most states in the country allow brewers to own retail licenses and the 3-Tier System is alive and well in those states.
• 97% of all beer sold in the state is carried by Montana distributors and 3% is sold directly by Montana brewers, and this bill will not change these facts. Brewers will continue to rely upon the distribution channels to move our beer.
• HB326 will give brewers choices for them to grow their retail abilities, expand production, and increase investments in people and facilities in our cities and towns at our main street brewery businesses.

We do not need more time to study this issue. We need the Legislature to act now to help brewers grow their businesses.  Write the committee members of the House Business and Labor Committee and ask them to Act Now and Support HB326 and help the brewing industry grow in our state. To contact the  committee members using the state’s system, click here.  Or, here is list of the committee members with their emails if you would rather send an email directly.
Thank you for supporting Montana Craft Beer!  Cheers to all Montana Brewers!

Member/
Assignment:
Tom Berry  (R) HD 40              [email protected]
Chair – Roundup

Ryan Lynch  (D) HD 76            [email protected]
Vice Chair – Butte

Daniel R Salomon  (R) HD 93   [email protected]
Vice Chair – Ronan

Christy Clark  (R) HD 17          [email protected]
Member- Choteau

Willis Curdy  (D) HD 98            [email protected]
Member – Missoula

Steve Fitzpatrick  (R) HD 20      [email protected]
Member – Great Falls

Chuck Hunter  (D) HD 83          [email protected]
Member – Helena

George G Kipp  (D) HD 15         [email protected]
Member – Heart Butte

Mike Lang  (R) HD 33               [email protected]
Member – Malta

David (Doc) Moore  (R) HD 92    [email protected]
Member -Missoula

Mark Noland  (R) HD 10            [email protected]
Member – Bigfork

Andrea Olsen  (D) HD 100         [email protected]
Member – Missoula

Gordon Pierson  (D) HD 78        [email protected]
Member – Deerlodge

Christopher Pope  (D) HD 65      [email protected]
Member – Bozeman

Vince Ricci  (R) HD 55               [email protected]
Member – Laurel

Tom Richmond  (R) HD 56          [email protected]
Member – Billings

Scott Staffanson  (R) HD 35       [email protected]
Member – Sidney

Tom Steenberg  (D) HD 99         [email protected]
Member – Missoula

Jeffrey W Welborn  (R) HD 72     [email protected]
Member – Dillon