Rating: –1
Bill Summary:
House Bill 276 revises Idaho’s licensing laws for brewers, wholesalers, and dealers of beer. It introduces new definitions for “contractee brewer” and “contractor brewer,” updates licensing rules for brewers producing fewer than 30,000 barrels annually, and outlines how those brewers may obtain retail and wholesale licenses. The bill permits small brewers to sell beer directly to consumers at their brewery or one remote retail location and, under certain conditions, allows them to self-distribute their products to retailers as wholesalers.
To self-distribute, a brewer—whether in-state or out-of-state—must maintain a physical warehouse in Idaho, use in-house employees and equipment for distribution, and comply with all regulations applicable to licensed wholesalers. The bill includes legislative intent language asserting that these provisions are necessary to ensure parity under the dormant commerce clause and to protect public health and market integrity through in-state oversight. It also updates requirements regarding warehouse use, territory enforcement, and recordkeeping.
Reason for Rating:
Although the bill is framed as pro-small business, H0276 imposes significant new regulatory barriers that conflict with the Idaho Republican Party Platform’s commitments to free markets and limited government. Requiring out-of-state brewers to establish a physical warehouse in Idaho in order to self-distribute creates a protectionist burden that discourages competition and limits market access. Rather than eliminating regulatory complexity, the bill reinforces Idaho’s restrictive three-tier alcohol distribution system and expands licensing requirements.
Additionally, the bill grants broad authority to unelected bureaucrats, such as the Director of the Idaho State Police, without offering procedural transparency or meaningful recourse for businesses. Instead of reducing red tape, the bill entangles small and out-of-state brewers in layers of compliance, licensing, and territory enforcement—favoring entrenched industry players over entrepreneurial growth. For these reasons, H0276 is appropriately rated at –1.