State microbreweries are raising their kegs and cheering the South Dakota Legislature. Earlier today (March 6) a bill was sent to Governor Dennis Daugaard for his signature that will ease a state production limit and other regulations on South Dakota craft breweries.

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. And with the explosion of microbreweries in the state it strengthens their bottom line.

The compromise measure advancing to Daugaard comes after competing micro brewing 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.

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