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States Rewrite Regulations to Accommodate Microbreweries

The popularity has craft breweries bumping up against the country's longstanding system that governs the beer industry. In many states, microbreweries can serve their beer at their locations and brewpubs, but lose that ability when they exceed production caps.

Four Peaks Brewing Co. has grown over the last two decades from a historic red-brick microbrewery and restaurant into an Arizona staple that served nearly 1 million gallons of beer last year, including its popular Kilt Lifter ale. The company has also become a mainstay in the corridors of the Arizona Legislature. Three times in the past 10 years, it has helped persuade lawmakers to change state law to increase a cap on beer production for microbreweries.

The increasing popularity of craft beer around the country has legislatures nationwide rewriting laws to accommodate microbreweries as they exceed production limits.

Arizona Republican Gov. Doug Ducey went to Four Peaks' original location in Tempe on Tuesday to sign a law that expands the caps, touting it as a business-friendly measure to assist the state's burgeoning craft beer industry.

Daniel Luzer is GOVERNING's news editor.