State House bottles craft brew bill, sends it to governor

PIERRE, S.D. (AP) – A bill that would ease a state production limit and other regulations on South Dakota craft breweries is headed to Gov. Dennis Daugaard for his signature.

The state House voted 63-3 Tuesday to approve the bill, which passed unanimously through the Senate. Daugaard has pushed for the brewing overhaul, saying state regulations are stifling the industry.

Republican Rep. Tim Reed, a supporter, says the bill would help young businesses.

The compromise measure advancing to Daugaard comes after competing microbrewing measures at the statehouse initially pit beer distributors against craft brewers.

The final legislation would create a microbrewery license allowing the businesses to produce 30,000 barrels of beer annually, up from 5,000 barrels, and let craft brewers bypass distributors to sell up to 1,500 barrels of their suds each year directly to bars.