BILL ANALYSIS Ó AB 2609 Page 1 Date of Hearing: April 30, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2609 (Nestande) - As Amended: April 22, 2014 Policy Committee: Governmental Organization Vote: 19-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill allows nonprofit organizations that promote home brewing, or that are primarily composed of home brewers, to sell beer at fundraising events subject to specified conditions, including a limit of two events per year that sell wine or beer for each organization. FISCAL EFFECT Minor and absorbable enforcement costs to the Department of Alcoholic Beverage Control (ABC). COMMENTS 1) Purpose. According to the author, this bill corrects an unintended consequence in AB 1425 (Governmental Organization Committee), Chapter 463, Statutes of 2013. Following the passage of that bill, ABC concluded the new law did not allow for home-brewed wine or beer to be used at a fundraiser where a ticket for the event must be purchased. AB 2609 revises the description regarding the authorized removal of home-brew beer from the home for use at a competition, judging, exhibition, or tasting. It also provides specific authorization for non-profit home-brew associations to host annual or semi-annual events for their members to participate in exhibitions, judging, tastings or competitions. 2) Limitations and requirements. AB 2609 limits the number of permits that can be issued for such events to two per AB 2609 Page 2 nonprofit organization per calendar year. The bill requires each event to contain an educational component, limits attendance at the event to bona fide organization members only and prohibits the organizations from soliciting new members on the day of the event at the event site, requires the organization to provide notice to attendees that the home brewed beers at the event are not regulated products subject to health and safety standards, and requires the organization to provide ABC with a list of attendees 48 hours before the event if more than 50 members are expected to attend the event. 3) Event cancellations. Following the passage of AB 1425, the California Homebrewers Association was forced to cancel its 2014 annual event. Similarly, the American Homebrewers Association plans to hold its 2015 National Homebrewers Conference in San Diego, but will likely be unable to do so without amending the current law. Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081