Microbrewery bill is looking to modernize SD’s alcohol laws

South Dakota – Yesterday, the Senate Commerce Committee introduced Senate Bill 169, Governor Daugaard’s bill to modernize South Dakota’s alcohol laws concerning microbreweries.

“South Dakota’s statutes limit the ability of our homegrown craft breweries to grow and thrive,” said Governor Daugaard. “Whenever it is practical, our state should minimize government regulation and look to free enterprise to promote economic growth.”

South Dakota’s current laws governing microbreweries are among the most onerous in the country. Current law limits microbrewery privileges to 5,000 barrels. Exceeding that limit takes away privileges vital to the success of small businesses and Senate Bill 169 will increase that to 30,000 barrels. The corresponding cap is 60,000 barrels in Montana, 50,000 barrels in Wyoming, and 25,000 barrels in North Dakota. Iowa imposes no barrel limit.

Senate Bill 169 will also allow microbreweries to sell their products directly to retailers, such as restaurants and grocery stores. Current South Dakota law prohibits this, and also prevents a microbrewery from moving product between two of its own locations. Montana, Wyoming, North Dakota, Minnesota, and Iowa all allow microbreweries to sell directly to other retailers.