Collaborative distilling.
Collaborative distilling. Allows the holder of an artisan distiller's permit (artisan distiller) to: (1) manufacture liquor, including blending liquor sourced from another licensed manufacturer with liquor the artisan distiller manufactures; and (2) redistill, age, or bottle liquor, including liquor sourced from another licensed manufacturer; in accordance with certain provisions. Allows an artisan distiller to manufacture liquor for another artisan distiller if certain conditions are met. Allows an artisan distiller to blend or sell liquor from another licensed manufacturer as liquor that the artisan distiller manufactures if the artisan distiller's aggregate annual sales, in gallons, is made up of not less than 70% of liquor that was fermented and distilled from raw materials by the artisan distiller at the licensed premises of the artisan distiller. Specifies that brandy or liquor transferred in bond counts, for the calendar year in which the transfer occurs, toward the gallonage limit for the permit holder that receives the liquor or brandy transferred in bond. Provides that a transfer in bond of liquor or brandy that occurred before July 1, 2025, between the holder of an artisan distiller's permit, a farm winery brandy distiller's permit, or a distiller's permit: (1) is not subject to a provision that restricts the amount of sourced liquor that an artisan distiller may sell; and (2) does not, for purposes of that provision, count toward the amount of sourced liquor that an artisan distiller may sell.
HB1663 is a bill that aims to expand the activities of artisan distillers. If passed, it would allow these distillers to manufacture liquor by blending their own products with those from other licensed manufacturers. It also permits them to redistill, age, or bottle liquor, including those from other manufacturers, under specific conditions. Additionally, it allows an artisan distiller to produce liquor for another artisan distiller if certain conditions are met. Importantly, for an artisan distiller to blend or sell another manufacturer’s liquor as their own, at least 70% of their annual sales must come from liquor fermented and distilled by them at their licensed premises. The bill specifies that transfers of brandy or liquor in bond, before July 1, 2025, are exempt from restrictions on sourced liquor sales and do not count towards the limit for the receiving permit holder.
This bill primarily affects artisan distillers by giving them more flexibility and opportunities in their operations. By allowing them to blend and sell liquor from other licensed manufacturers, it could enhance their product offerings and potentially increase their market reach. The requirement that at least 70% of their sales must come from their own production ensures that they maintain a significant level of direct involvement in their products.
As of the latest update on February 11, 2025, the bill has passed its third reading in the House and was referred to the Senate. The Senate is currently considering the bill, having referred it to the Committee on Public Policy for further review. This bill has undergone several key steps, including initial referral, committee review, and passage in the House, indicating steady progress through the legislative process.