Barrel Cap Increase Approved in Kansas

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Signed into law by the Governor, S.B. 326 increases the amount of beer that can be manufactured with a microbrewery license, allowing production between 100 and 60,000 barrels of domestic beer in a calendar year for each microbrewery license issued in the state. The bill also specifies that if a licensee has a 10 percent or greater ownership interest in one or more entities that also hold a microbrewery license, the aggregate number of domestic barrels manufactured by all licenses under such common ownership cannot exceed 60,000 barrels. Under previous law, each license allowed the production of between 100 and 30,000 barrels of beer in a calendar year. The bill specifies that a microbrewery licensee that also is licensed as a club or drinking establishment can sell and transfer domestic beer to that club or drinking establishment. Microbrewery licensees with 10 percent or greater ownership interest in one or more entities that also hold a microbrewery license are allowed to manufacture and transfer domestic beer between the microbrewery licenses with common ownership for storage or sale. Microbrewery licensees also are able to remove hard cider produced by the licensee from the licensed premises for delivery to licensed wine distributors. Further provisions allow a microbrewery to manufacture and distribute not more than 100,000 gallons of hard cider and remove the one-year residency requirement for microbrewery, microdistillery, and farm winery licensees. Microbrewery, microdistillery, and farm winery licensees still are required to be Kansas residents.

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