Wins, Losses, and Work Still To Do: A Q1 State Legislative Recap

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Many state legislative sessions have ended and more will end shortly. Let’s take stock of the state legislative issues your association has been involved with in recent months. 

Brews to Barns 

The Brewers Association’s top state priority is currently Brews to Barns legislation, an excise tax credit of $0.08 per dry weight pound for brewers who donate their spent grain for agricultural uses. When implemented, in some states it could remove a brewery’s state excise tax liability altogether and in others it could substantially reduce that burden. This makes Brews to Barns a direct financial relief for members and reinforces breweries’ strong working relationships with agriculture.  

Florida’s Brews to Barns bill has the support of the state’s Department of Agriculture, which opted to move its effort through the budget process. That process has been scheduled for the middle of May. They seek a higher per dry weight pound credit ($0.25), so the BA and the Florida Brewers Guild will watch closely to see the reaction from lawmakers and be ready to adjust accordingly. 

Pennsylvania has a bill (H.B. 2234) that will also go through budget reconciliation. Their process will begin in early June, and the bill needs to clear its first committee hurdle with a completed fiscal note by then, before they enter budget negotiations. 

After the promise of advancing through two committee hearings, the Tennessee Brews to Barns (alternatively named “Ferment to Feed”) effort did not progress any further. The BA is working with the Tennessee Craft Brewers Guild and their team to establish how we can make a stronger push in 2027. 

The BA is working with several other state guilds to introduce Brews to Barns in other states in the 2027 legislative session. 

Franchise Reform 

In Nebraska, the BA supported continued guild efforts to advance franchise reform legislation by testifying at a Liquor Control Commission hearing on May 5, laying the groundwork for further work on modernizing Nebraska’s laws next year. BA testimony focused on changes in the market since Nebraska’s franchise law was enacted in 1989, on successful franchise reform in other states, and on how such reform does not threaten wholesale businesses or effective regulation. A Study Commission on Nebraska’s liquor laws will further explore these issues over the coming months. 

Direct-to-Consumer Shipping 

Missouri saw multiple direct-to-consumer shipping bills introduced this year, all of which allow for the shipping of both beer and distilled spirits. Leveraging the BA’s resources on the topic, the Missouri Craft Brewers Guild led negotiations with wholesalers and lawmakers to find a compromise that would work for everyone. Unfortunately, the bill will be held for this year and revisited in 2027. 

Defensive Efforts 

With the support of the BA, the Hawaii Craft Brewers Guild faced down two serious threats to small business: the first, a change in the excise tax to assess that tax using alcohol by volume (ABV), and a second to lower the blood alcohol content for driving while intoxicated from .08 blood alcohol content (BAC) to .05 BAC. With resources, testimony, and experiences from other states that have looked at these options, we were able to defeat these threats this year, although we expect the same or similar legislative proposals next year. 

Colorado saw two bills introduced that would effectively raise its excise tax to fund mental health services. Called a “fee” by bill sponsors, the money would be levied on brewers at the same time and through the same department that collects taxes. A strong coalition including the BA, the Colorado Brewers Guild, wholesalers, retailers, and the Beer Institute came together to push back on this misguided and costly proposal.  

Washington state has become an annual battleground for the tax fight and for .05 BAC efforts, and the BA is once again involved in pushing back on legislation that would harm small businesses. Along with a coalition of partners, the BA worked closely with the Washington Brewers Guild and defeated both measures, though they are expected to come back next session. 

Finally, a municipal effort in Kansas City, Missouri, to ban certain single-serve alcohol beverages in certain districts unfortunately passed through the city council with support from the mayor. The BA worked with larger beer producers and wholesalers to push back on this policy (similar to local policies introduced about 20 years ago in Seattle), but the council was dedicated to that effort. The BA will work with guilds and other allies to respond to similar proposals elsewhere. 

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In the states, the BA works closely with local guilds, brewers, and, where possible, other stakeholders to influence legislation and get results that protect small and independent breweries. Members can check out the state bills we’re actively working on or legislation we’re currently monitoring—simply click on the State Bills tab. 

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