§ 3-5-1405 - Licenses -- Scope -- Restrictions.

3-5-1405. Licenses -- Scope -- Restrictions.

(a) The Director of the Alcoholic Beverage Control Division may issue a license for a licensee:

(1) To operate a small brewery that:

(A) Manufactures at its licensed facility:

(i) No less than thirty-five percent (35%) of its beer and malt beverages to be sold in the state and no more than

thirty thousand (30,000) barrels per year; or

(ii) Purchases from a producer brewery beer or malt beverages in an aggregate quantity not to exceed sixty thousand (60,000) barrels per year;

(B) Sells to wholesale or to the consumer for consumption either on or off the premises brand name products of the licensed facility;

(C) Stores any beer and malt beverages legally purchased for resale on the premises;

(D) Serves on the premises or at small brewery off-premises retail sites complimentary samples of beer produced by the small brewery or another licensed small brewery if the small brewery or its off-premises retail sites are located in a wet territory;

(E) Sells at retail by the drink or by the package beer produced on the premises of the small brewery or produced by another small brewery if all sales occur in a wet territory and at:

(i) The small brewery off-premises retail sites; or

(ii) (a) Fairs and food and beer festivals, with the permission and the consent of the management of the events.

(b) A sales and use tax permit also is required for sales under this subdivision (a)(1)(E)(ii);

(F) (i) Sells and transports beer produced on the premises of the small brewery or of another small brewery to wholesale and retail license holders and small brewery license holders.

(ii) To sell and transport beer under subdivision (a)(1)(F)(i) of this section, the small brewery shall obtain a small brewery wholesale permit; and

(G) Sells for consumption on the premises of the small brewery beer produced by the small brewery or another small brewery and purchased by the drink or by the package at the licensed premises if the small brewery is located in a wet territory; or

(2) To operate a microbrewery-restaurant that:

(A) Manufactures beer and malt beverages in an aggregate quantity not to exceed five thousand (5,000) barrels per year;

(B) (i) Sells to wholesale or retail dealers or to the consumer for consumption either on or off the premises.

(ii) However, off-premise sales are limited to brand

name products of the licensed facility;

(C) Stores any beer and malt beverages purchased for resale on the premises; and

(D) Sells wine on the premises.

(b) Notwithstanding the provisions of any other law to the contrary, beer and malt beverages may be sold for on-premises or off-premises consumption during all legal operating hours in which business is normally and legally conducted on the premises, if:

(1) The brewery provides tours through its facility; and

(2) Only sealed containers are removed from the premises.

(c) (1) A native brewery may provide beer and malt beverages it manufactures to charitable or nonprofit organizations or sell for resale beer and malt beverages it manufactures to charitable or nonprofit organizations holding valid special event permits issued by the Alcoholic Beverage Control Board.

(2) The sale of those products is limited to the duration of the particular special event.

(d) Any person holding a valid microbrewery-restaurant license is considered a native brewery licensee that maintains production limits according to the definition of microbrewery-restaurant in 3-5-1403.