Craft brewing compromise moves to South Dakota House floor

PIERRE, S.D. (AP) – A South Dakota House panel has approved a bill that would ease a state production limit and other regulations on microbreweries.

The House Commerce and Energy Committee voted 11-1 Monday to send the measure to the chamber’s floor. Gov. Dennis Daugaard has pushed for the brewing overhaul, saying state regulations are stifling the industry.

The advancing bill comes after competing microbrewing measures at the Capitol initially pit beer distributors against craft brewers. Senate lawmakers united around the compromise last month, voting unanimously to send the bill to the House.

It would create a microbrewery license allowing the businesses to produce 30,000 barrels of beer annually, up from 5,000 barrels, and let craft brewers bypass distributors to sell up to 1,500 barrels of their suds each year directly to bars.

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