The Missouri Craft Brewers Guild (MCBG) was approached by the Missouri Beer Wholesalers Association (MBWA) for input on updating language in Missouri House Bill 1924 which addresses trade practices in the liquor industry. The bill was first introduced by the MBWA in the 2018 legislative session. MBWA plans to re-file the bill in 2019.
2018
CRAFT BEVERAGE MODERNIZATION & TAX REFORM ACT
The MCBG supports the federal Craft Beverage Modernization and Tax Reform Act (CBMTRA) which was reintroduced in early February by Senators Ron Wyden (D-OR) and Roy Blunt (R-MO). The legislation creates a more fair and equitable tax structure for beverage alcohol producers and their consumers by permanently lowering the federal excise taxes.
The Guild is committed to helping the Brewers Association advocate for this important bipartisan legislation. CBMTRA is co-sponsored by both of Missouri Senators (Roy Blunt and Josh Hawley) and seven Missouri Representatives: Clay, Wagner, Luetkemeyer, Cleaver, Graves, Long and Smith. The Guild is still seeking support of Vicky Hartzler in District 4.
The MCBG supports the federal Craft Beverage Modernization and Tax Reform Act (CBMTRA) which was reintroduced in early February by Senators Ron Wyden (D-OR) and Roy Blunt (R-MO). The legislation creates a more fair and equitable tax structure for beverage alcohol producers and their consumers by permanently lowering the federal excise taxes.
The Guild is committed to helping the Brewers Association advocate for this important bipartisan legislation. CBMTRA is co-sponsored by both of Missouri Senators (Roy Blunt and Josh Hawley) and seven Missouri Representatives: Clay, Wagner, Luetkemeyer, Cleaver, Graves, Long and Smith. The Guild is still seeking support of Vicky Hartzler in District 4.
2019
PORTABLE REFRIGERATION UNITS
The MCBG will follow closely Senate Bill 197 sponsored by Senator Bob Onder (R) and House Bill 356 sponsored by Representative Dean Plocher (R) both of which seek to remove the sunset from RSMo 311.198 which pertains to the leasing of portable refrigeration units between brewers and retailers. The Guild fought against this statute revision when first introduced in 2016 and believes that allowing large commercial brewers to lease coolers to retailers creates an unlevel playing field and is detrimental to the craft brewing industry in Missouri.
UPDATE: Mid-session, a compromise was reached that extends the sunset provision through January 1, 2026. Additional language was added to the bill that enables an 18-20-year-old working for a licensed distributor to unload a delivery truck under the supervision of a driver 21+. While not an ideal result, the compromise does allow the Guild time to evaluate how these portable refrigerated coolers impact the market share for the craft brewers. The Guild expects to have to push back against this again in 2025. At the end of the legislative session, this bill made it to the Governor's desk and is expected to be signed.
The MCBG will follow closely Senate Bill 197 sponsored by Senator Bob Onder (R) and House Bill 356 sponsored by Representative Dean Plocher (R) both of which seek to remove the sunset from RSMo 311.198 which pertains to the leasing of portable refrigeration units between brewers and retailers. The Guild fought against this statute revision when first introduced in 2016 and believes that allowing large commercial brewers to lease coolers to retailers creates an unlevel playing field and is detrimental to the craft brewing industry in Missouri.
UPDATE: Mid-session, a compromise was reached that extends the sunset provision through January 1, 2026. Additional language was added to the bill that enables an 18-20-year-old working for a licensed distributor to unload a delivery truck under the supervision of a driver 21+. While not an ideal result, the compromise does allow the Guild time to evaluate how these portable refrigerated coolers impact the market share for the craft brewers. The Guild expects to have to push back against this again in 2025. At the end of the legislative session, this bill made it to the Governor's desk and is expected to be signed.
ALCOHOL TRADE PRACTICES
The MCBG is following House Bill 634 (formerly HB 1924 in 2018) which seeks to repeal section 311.070, RSMo, and to enact one new section relating to alcohol trade practices. This addresses updating terminology in reference to "equipment and supplies" and "non-refrigeration dispensing accessories" as well as adds an increase in dollar amount limits related to value of product displays and permanent point-of-sale advertising materials. Additionally, the bill adds a cap of $2,500 on non-refrigeration dispensing accessories that can be given or lent by a wholesaler or brewer to a retailer and excludes an entertainment venue serving 1,500 or more patrons from any dollar limits on the amount of dispensing accessories that can be given or lent.
The MCBG believes that the practice of wholesalers giving away any amount of non-refrigerated dispensing accessories can create an environment where a retailer may inadvertently agree to limiting taps only to beers supplied by the wholesaler causing an unfair and illegal business practice.
UPDATE: The Guild, along with a few other industry associations, testified against the bills in both House and Senate hearings. The bills did make it through General Laws committees in both the House and Senate, but never went further than that. The Guild believes it will see this legislation introduced again next year, so it will be prepared to push for tighter limits on the amount of equipment that can be given away to keep the playing field more competitive for craft brewers.
The MCBG is following House Bill 634 (formerly HB 1924 in 2018) which seeks to repeal section 311.070, RSMo, and to enact one new section relating to alcohol trade practices. This addresses updating terminology in reference to "equipment and supplies" and "non-refrigeration dispensing accessories" as well as adds an increase in dollar amount limits related to value of product displays and permanent point-of-sale advertising materials. Additionally, the bill adds a cap of $2,500 on non-refrigeration dispensing accessories that can be given or lent by a wholesaler or brewer to a retailer and excludes an entertainment venue serving 1,500 or more patrons from any dollar limits on the amount of dispensing accessories that can be given or lent.
The MCBG believes that the practice of wholesalers giving away any amount of non-refrigerated dispensing accessories can create an environment where a retailer may inadvertently agree to limiting taps only to beers supplied by the wholesaler causing an unfair and illegal business practice.
UPDATE: The Guild, along with a few other industry associations, testified against the bills in both House and Senate hearings. The bills did make it through General Laws committees in both the House and Senate, but never went further than that. The Guild believes it will see this legislation introduced again next year, so it will be prepared to push for tighter limits on the amount of equipment that can be given away to keep the playing field more competitive for craft brewers.
