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