This section lets the board issue a small craft distillery license and lets the licensee distill and sell liquor only within the listed limits and conditions.
(a) In addition to the licenses authorized to be issued and renewed by the board pursuant to Chapter 3A, the board, upon the applicant’s compliance with this article, Chapter 3A, and the rules adopted thereunder, and the conditions set forth in subsection (b), may issue to a qualified applicant a small craft distillery license which shall authorize the licensee to do all of the following: (1) Distill liquor, in a quantity not to exceed 50,000 gallons in any one year, and sell liquor distilled on the licensed premises in unpackaged form at retail for on-premises consumption at the licensed premises only. (2) Sell liquor distilled on the licensed premises in original, unopened containers at retail for off-premises consumption, provided the liquor sold for off-premises consumption may not exceed 4.5 liters per customer per day and shall be sealed, labeled, packaged, and taxed in accordance with state, local, and federal laws, rules, and regulations. (3) Sell liquor distilled on the premises in original, unopened containers to the board or as authorized by the board. (4) Donate and deliver up to 4.5 liters of the licensee’s liquor to a licensed charitable special event operated by or on behalf of a nonprofit organization. Donations shall be taxed in accordance with state, local, and federal laws, rules, and regulations. Any liquor remaining at the conclusion of the charitable event shall be returned to the small craft distillery for disposal. (5) Purchase liquor in original, unopened containers from the board or as authorized by the board and sell the liquor at retail, for on-premises consumption only, in a room or rooms or place on the licensed premises at all times accessible to the use and accommodation of the general public and limited to individuals 21 years of age and older. (b) A small craft distillery is subject to all of the following conditions: (1) The proposed location of the premises, at the time of the original application, shall not be prohibited by a valid zoning ordinance or other ordinance in the valid exercise of police power by the governing body of the municipality or county in which the small craft distillery is located. (2) Liquor distilled by the licensee shall be packaged and sold in any original or unopened containers as approved by the board and in accordance with the standards of fill requirements prescribed by the U.S. Department of the Treasury or contained in barrels or kegs from which the liquor is to be dispensed only on the premises where distilled for consumption on the premises. (3) A small craft distillery may not sell any liquor if the small craft distillery is not actively and continuously engaged in the distilling of liquor on the licensed premises. (c) The annual license fee levied and prescribed for a license as a small craft distillery issued or renewed by the board is one thousand dollars ($1,000). (d) Sections 28-3-4 and 28-3A-6(b) shall not be applicable with regard to liquor distilled by the small craft distillery and sold and dispensed on the licensed premises. (e) Nothing in this section shall be construed to alter in any way the distribution of revenue from a tax levied pursuant to a local law.