Legislator moves to hamstring craft brewers

[vicupstate]

http://www.greenvilleonline.com/story/news/local/2014/05/15/craft-beer-law-loosens-restrictions-pass-today/9118289/

South Carolina is on the verge of passing the most progressive craft beer production laws in the country, industry advocates say — a prospect that just three weeks ago was virtually unthinkable.

The "Stone Bill" — an effort to loosen Prohibition-era beer laws to attract San Diego-based Stone Brewing Co.'s $31 million eastward expansion — has already been approved by the state House of Representatives.

On Thursday, the state Senate assigned the bill to a six-member conference committee that is expected to meet as early as next week to iron out details.

Half of the committee's House and Senate members sponsored the bill, said Wesley Donehue, a political consultant for the South Carolina Brewers Association who has helped coordinate the legislative effort.

"We made magic happen," Donehue told The Greenville News on Thursday. "To pass a bill this fast in South Carolina is something I've not seen, especially when it comes to alcohol. It's pretty insane."

The new law would eliminate a choice beer producers have had to make for 80 years: Produce a little and serve on site or produce a lot and only be allowed to distribute.

But not both.

Stone Brewing — the nation's 10th largest brewer reporting $135 million in revenue last year — demands both options in its "request for proposal" released this past winter, which several communities in South Carolina, including Greenville, have responded to.

Three weeks ago, the bill was introduced and was cast as a launching point for a broader discussion on making beer laws more favorable to brewers in the state's fledgling-but-booming craft beer industry, with an eye toward adoption in the coming winter.

However, the allure of capturing a company promising a $31 million investment and more than 250 jobs was enough put the bill on a fast track.

Last year, a study by the national Brewers Association found that craft beer production contributed $254 million to the state's economy in 2012.

There are currently 18 breweries in South Carolina and 11 brewpubs, accounting for at least double the amount from the previous study.

The six-member legislative committee that will meet and issue a report is made up of three members who sponsored the Stone Bill, Donehue said. The House and Senate are expected to move quickly after that to adopt the recommendations, he said.

The bill met with some opposition this week from beer wholesalers who had been reluctant to join negotiations, Donehue said.

The S.C. Beer Wholesalers Association sought to have the bill reassigned to another committee, Donehue said, which would have effectively killed its chances of passing this year.

The wholesalers association — which represents companies in the state's three-tier distribution system — said that the issue wasn't about defeating the bill but instead involved concerns that the legislation was being drafted in a way that would present "legal challenges."

The wholesalers association supports the craft beer industry's expansion and economic development in the state and wants to "ensure smooth expansion," said Julie Cox, the association's executive director.

"We are not lobbying against the bill," Cox said.

The bill proposes a novel change in state beer laws.

Currently, a brewer can operate under two constructs — a brewpub or a brewery.

Brewpubs are allowed to sell unlimited quantities of beer for on-site consumption, but they can't distribute their products to the market.

Breweries can produce unlimited quantities and have their beers distributed but are only allowed to offer the equivalent of three pints of beer to be consumed on the premises per person per day.

The change in law would allow Stone to operate under the new definition of a brewpub, upping brewpub production limits from 2,000 barrels per year to 500,000.

The change would create one of the most progressive beer laws in the country, Bristow said.

[Intuition Ale Works]

Sorry for the lengthy post but a restaurant in Stuart is suing the state to legalize half gallon growlers.

From the Sunshine State News:

Florida's 'Growler' Ban Unconstitutional, Lawsuit Claims
By: NANCY SMITH | Posted: October 28, 2014 3:55 AM

Florida is violating the United States Constitution by arbitrarily banning restaurants, taverns, and breweries from selling or filling the most popular portable jug for craft beers -- the half-gallon (64-ounce) growler.

That's according to a civil rights lawsuit filed today in federal court on behalf of the owners of a downtown Stuart craft beer restaurant, The Crafted Keg. The lawsuit was filed by the national free-enterprise legal organization, Pacific Legal Foundation (PLF).

"It should be an interesting suit as we are fairly certain that this is the first courtroom challenge to the growler ban," said Kate Pomeroy, PLF's Washington, D.C., media director.


"PLF always gets its man, so to speak," retired Orange County attorney Sanford R. Craig told Sunshine State News. Craig was part of a legal team that unsuccessfully opposed PLF a few years ago. "The state is in for a fight on this one."

Surprisingly, the growler ban has been one issue both incumbent Republican Gov. Rick Scott and his Democratic opponent Charlie Crist agree on -- they both back growler legalization. But, for two years in a row, attempts to end the ban were scuttled when lawmakers, acting at the behest of big beer interests, weighed down a bill to repeal the growler ban with new restrictions on brewery sales.

Under current law, breweries can sell beer in quart and gallon-size containers, but they can't fill a half-gallon bottle. Craft brewers want to end the ban.

More specifically, "growlers" are jugs of beer patrons buy at craft beer establishments and then bring back, or carry to other taverns, breweries, or restaurants, for refills with different kinds of custom brewed beer.  Florida's growler restrictions, Fla. Statute Section 563.06(6), allow this practice when it comes to gallon‑ or quart‑sized beer jugs.  But the most popular size -- the half-gallon growler -- is prohibited.  It cannot be sold or filled by any business in the state.

Said Mark Miller, managing attorney with PLF's Atlantic Center office in Palm Beach Gardens, "Florida imposes a double standard by allowing less popular growlers but banning the one people prefer. Florida's restrictions stand in stark contrast to 47 other states, where half-gallon growlers are perfectly legal and have become the industry standard.

"There is simply no defensible reason for Florida to single out the most popular craft-brew jug and ban it," Miller continued. "What's the health or safety rationale for telling consumers that a half-gallon jug is off-limits, but two quarter-gallon jugs are fine? Clearly, the ban isn't to help the public, it's to protect major beer interests by holding back the growth of craft brewers."

He explained, "This is why the growler ban can't be allowed to stand. Protecting a powerful industry's market share isn't a legitimate reason for government restrictions or regulations. It doesn't justify limiting the economic liberty of other businesses and consumers. Under constitutional guarantees of due process and equal rights, regulations must serve the public interest, not the demands of the well-connected for protectionism."

According to a PLF prepared statement, The Crafted Keg is a small-business success story whose ability to serve customers "is undermined by the state's unconstitutional ban on popular half-gallon growlers."

Located in one of Stuart's historic downtown buildings, The Crafted Keg was founded last year by Guy Piasecki and his three sons, Matthias, Alex, and Max, along with their partner Zachary Levine. All are beer enthusiasts, says PLF, as well as creative entrepreneurs who recognized an exploding demand for craft beer products.

"Since opening in December, The Crafted Keg has grown steadily in popularity. Customers are offered 58 varieties of craft beer, cider, soda, and wine, along with a variety of meats, cheeses, and other bar foods that go with a good beer," the statement says.

Added Miller, "The Crafted Keg is an inspired business venture, but its potential is held back by Florida's unjustified ban on the most popular service it could offer. The Crafted Keg specializes in filling growlers, but it can't fill the growler that most people prefer."

PLF sees the problems for Florida craft brew establishments like The Crafted Keg as particularly acute when it comes to serving tourists -- people from any of the 47 states where businesses are free to sell and refill half-gallon growlers. When out‑of‑state customers bring in their 64‑ounce growlers to be filled, Florida businesses like The Crafted Keg are forced to say "no."

While a Florida business can refill two 32-ounce growlers, or a 128‑ounce growler, says PLF, this isn't a welcome alternative, because it's more expensive and connoisseurs generally consider the 64-ounce growler as the most convenient size.

Florida's growler restrictions have been found to be limiting the growth of a promising industry, according to Business Week. Though there are 50 craft breweries around the state with another 28 soon to open, a University of Florida study, commissioned by the Florida Brewers Guild, concluded that the state could eventually support 500 craft breweries.

The lawsuit has been filed at a time when a lobbying group for Florida distributors that sell brews from MillerCoors and other large (non-Bud) beermakers is making what looks like a peace offering.

In a video posted to its website Oct. 9, the Beer Industry of Florida promised its support for ending the ban: "We're mobilizing an industry-wide coalition to make this new container size legal, no strings attached," says the narrator of the video.

Rep. Katie Edwards, D-Plantation, one of two lawmakers who filed bills in 2013 to legalize the half-gallon jugs, told Sunshine State News she is hopeful peace will reign across the industry after the 2015 legislative session.

"I believe in the principles behind a three-tier system," Edwards said. "However, I believe it's imperative that the Legislature address the antiquated container regulation system set forth in statute. I still believe there is a better way to ensure the craft brews produced by local craftsmen can fit into the existing three-tier system."

Regardless of any lawsuit, she said, "I really think you will see a happy medium in 2015, with everyone doing some give and take."

"We want to give everyone great service, but the Florida growler restrictions are a barrier to that," said Alex Piasecki, co-owner of The Crafted Keg. "... We're very grateful that Pacific Legal Foundation is helping us fight this restriction that makes no sense from any reasonable point of view."

The lawsuit was filed in U.S. District Court for the Southern District of Florida, Fort Pierce Division. The case is The Crafted Keg v. Lawson, et. al. -- referring to Ken Lawson, secretary of the Florida Department of Business and Professional Regulation.

Donor-supported Pacific Legal Foundation, with its Atlantic Center as its Florida headquarters, describes itself as "a nonprofit public interest watchdog organization that litigates for limited government, property rights, and free enterprise, in courts across the country." PLF represents The Crafted Keg -- as all its clients -- free of charge.


http://www.sunshinestatenews.com/story/floridas-growler-ban-unconstitutional-lawsuit-claims

Pacific Legal Foundations Press Release.

PLF suit challenges Florida's unconstitutional ban on half-gallon "growlers"

STUART, FL;  October 28, 2014: Florida is violating the United States Constitution by arbitrarily banning restaurants, taverns, and breweries from selling or filling the most popular portable jug (or "growler") for craft beers — the half-gallon (64-ounce) growler.So argues a civil rights lawsuit filed in federal court today on behalf of the owners of The Crafted Keg, a popular downtown Stuart craft beer restaurant.

The lawsuit was filed by the national free-enterprise legal organization, Pacific Legal Foundation (PLF).  PLF's Florida headquarters is located in Palm Beach Gardens.  PLF represents The Crafted Keg — as with all its clients — free of charge.
Florida "growler" ban doesn't help the public –
only the market share of the traditional beer industry
"Growlers" are jugs of beer that patrons buy at craft beer establishments and then bring back, or carry to other taverns, breweries, or restaurants, for refills with various varieties of custom brewed beer.  Florida's growler restrictions (Fla. Statute Section 563.06(6)) allow this practice when it comes to gallon- or quart-sized beer jugs. But the most popular size — the half-gallon growler — is prohibited.  It cannot be sold or filled by any business in the state.

"Florida imposes a double standard by allowing less popular growlers but banning the one people prefer," said Mark Miller, managing attorney with PLF's Atlantic Center office in Palm Beach Gardens.  "Florida's restrictions stand in stark contrast to 47 other states, where half-gallon growlers are perfectly legal and have become the industry standard.

"There is simply no defensible reason for Florida to single out the most popular craft-brew jug and ban it," Miller continued.  "What's the health or safety rationale for telling consumers that a half-gallon jug is off-limits, but two quarter-gallon jugs are fine?  Clearly, the ban isn't to help the public, it's to protect major beer interests by holding back the growth of craft brewers.

"This is why the growler ban can't be allowed to stand," Miller continued.  "Protecting a powerful industry's market share isn't a legitimate reason for government restrictions or regulations.  It doesn't justify limiting the economic liberty of other businesses and consumers.  Under constitutional guarantees of due process and equal rights, regulations must serve the public interest, not the demands of the well-connected for protectionism."
The Crafted Keg is harmed by
Florida's anti-competition growler restrictions
The Crafted Keg is a small-business success story, but its ability to serve customers is undermined by the state's unconstitutional ban on popular half-gallon growlers.

Located in the historic Crary Buchanan Building in downtown Stuart, The Crafted Keg was founded last year by Guy Piasecki and his three sons, Matthias, Alex, and Max, along with their partner Zachary Levine.  They're all beer enthusiasts, as well as creative entrepreneurs who recognized an exploding demand for craft beer products.

Since opening in December, The Crafted Keg has grown steadily in popularity.  Customers are offered 58 varieties of craft beer, cider, soda, and wine, along with a variety of meats, cheeses, and other bar foods that go with a good beer.

"The Crafted Keg is an inspired business venture, but its potential is held back by Florida's unjustified ban on the most popular service it could offer," said Miller.  "The Crafted Keg specializes in filling growlers, but it can't fill the growler that most people prefer."
PLF's lawsuit aims to help craft brewers serve the public — including tourists
The problems for Florida craft brew establishments like The Crafted Keg are particularly acute when it comes to serving tourists — people from any of the 47 states where businesses are free to sell and refill half-gallon growlers.  Unfortunately, when out-of-state customers bring in their 64-ounce growlers to be filled, Florida businesses like The Crafted Keg are forced to say, "No."  While a Florida business can refill two 32-ounce growlers, or a 128-ounce growler, this isn't a welcome alternative, because it's more expensive and connoisseurs generally consider the 64-ounce growler as the most convenient size.
Removing roadblocks for a promising industry
Florida's growler restrictions are limiting the growth of a promising industry.  There are currently 50 craft breweries in the state, with another 28 set to open soon, according toBusiness Week.  A University of Florida study, commissioned by the Florida Brewers Guild, concluded that the state could eventually support 500 craft breweries.

"With their anti-competition growler rules, Florida politicians aren't just violating the constitutional rights of entrepreneurs, they're also holding back a promising, popular industry," said Miller.  "Our lawsuit is designed to uphold the right of entrepreneurs throughout Florida to earn a living and serve the public.  In the process, we're trying to clear away regulatory roadblocks to job creation and economic growth."
Statement from The Crafted Keg
"We want to give everyone great service, but the Florida growler restrictions are a barrier to that," said co-owner Alex Piasecki.  "People from out of state will come in and ask to have their half-gallon growlers filled, but we say that we can't, and that they'd have to buy a new growler in a different size. This makes them feel we're refusing service, but we're just following the law.  Some folks don't understand, and it makes for a real customer relations problem.

"We're very grateful that Pacific Legal Foundation is helping us fight this restriction that makes no sense from any reasonable point of view."

Filed in the U.S. District Court for the Southern District of Florida, Fort Pierce Division, the case is The Crafted Keg v. Lawson, et. al.  More information, including the complaint and a litigation backgrounder, is available at:  www.pacificlegal.org.

About Pacific Legal Foundation and its Atlantic Center in Florida
Donor-supported Pacific Legal Foundation is a nonprofit public interest watchdog organization that litigates for limited government, property rights, and free enterprise, in courts across the country.  PLF's Atlantic Center is located in Palm Beach Gardens, Florida.  PLF represents all clients free of charge.


http://www.pacificlegal.org/releases/10-28-14-the-crafted-keg-growler-8-571

[Rob68]

I find it hilarious that we all support the daily use of alchohol..the. biggest killer in the country.yet noone talk about baybe forcing any producer of any alcohol to pay in to a rehab system...everyones all about freedom to drink like madmen yet so many poo poo the idea of expanding support for the addiction...how about an alcoholic tax to fund it?....im not a prude as i partake usually once or twice a week but for many its an all day experience..rehab centers are defunded at the whim of leaders all thetime..programs cut..whos responsible?  Not just alcohol producers..drug companies should be helping to support help for those who partake in the addictive nature of their products.

[Gunnar]

I find it hilarious that we all support the daily use of alchohol..the. biggest killer in the country.yet noone talk about baybe forcing any producer of any alcohol to pay in to a rehab system...everyones all about freedom to drink like madmen yet so many poo poo the idea of expanding support for the addiction...how about an alcoholic tax to fund it?....im not a prude as i partake usually once or twice a week but for many its an all day experience..rehab centers are defunded at the whim of leaders all thetime..programs cut..whos responsible?  Not just alcohol producers..drug companies should be helping to support help for those who partake in the addictive nature of their products.

Fully agree. That afaik already the case for cigarettes and I feel it should be equally extended to other health issue causing products.

The big question is - where do you draw the line ? Are fatty foods and candy included, what about equipment for sports that have a high accident / injury rate.... ?

[urbanlibertarian]

The citizens of Florida are fully capable of deciding for themselves what substances to ingest and how much.  The majority should not be substituting their collective judgement for that of individuals.

[Rob68]

The citizens of Florida are fully capable of deciding for themselves what substances to ingest and how much.  The majority should not be substituting their collective judgement for that of individuals.

Its quit apparent that there many many many individuals whocant say no to an extremely addictive product..a product that makes many rich..arent they just drug dealers...why not legalize all drug regardless of what they are..alcohol, crack, meth...let it all be legal and see what happens.

[FSBA]

Obesity is an epidemic. Should we ban McDonalds and make it illegal to watch TV or use the internet for more than one hour a day?

In the decade since Portugal decriminalized ALL drugs, yes even crack and heroin, drug abuse is down by half http://www.forbes.com/sites/erikkain/2011/07/05/ten-years-after-decriminalization-drug-abuse-down-by-half-in-portugal/

[Intuition Ale Works]

The citizens of Florida are fully capable of deciding for themselves what substances to ingest and how much.  The majority should not be substituting their collective judgement for that of individuals.

Its quit apparent that there many many many individuals whocant say no to an extremely addictive product..a product that makes many rich..arent they just drug dealers...why not legalize all drug regardless of what they are..alcohol, crack, meth...let it all be legal and see what happens.

Our customers have compared our I-10 IPA to crack, so calling me a drug dealer is not a reach...