BILL ANALYSIS Ó
AB 2172
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Date of Hearing: April 6, 2016
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 2172
(Jones) - As Introduced February 18, 2016
SUBJECT: Homebrewery clubs: meetings
SUMMARY: Would permit the removal and use of home brewed beer
in connection with a club meeting held on the premises of an
authorized licensee. Would also permit club members to exchange
and consume home brewed beer at this type of meeting and would
require tables used for the meeting to be designated by the
authorized licensee, as specified. Specifically, this bill:
1) Provides that beer or wine manufactured for personal or
family use may be removed from the premises where made in
connection with a homebrewers club meeting that is held on the
premises of an authorized licensee.
2) Provides homebrewers may exchange containers of home brewed
beer during the club meeting. Home brewed beer made by the club
members may be consumed by club members while on the licensed
premises during the club meeting. Patrons of the authorized
licensee that are not club members shall not consume any home
brewed beer.
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3) Specifies that the authorized licensee shall designate, by
signage or other item, which tables within the licensed premises
shall be used by club members during the club meeting.
4) For purposes of this bill, "authorized licensee" means a
licensee that holds an on-sale beer and wine license for a bona
fide public eating place, an on-sale general license for a bona
fide eating place, a club license, an on-sale general brew pub
license, an instructional tasting license, a beer manufacturer's
license, or a small beer manufacturer's license.
EXISTING LAW:
1) Establishes Department of Alcoholic Beverage Control (ABC)
and grants it exclusive authority to administer the provisions
of the Alcoholic Beverage Control Act (ABC Act) in accordance
with laws enacted by the Legislature. This involves licensing
individuals and businesses associated with the manufacture,
importation and sale of alcoholic beverages in this state and
the collection of license fees for this purpose.
2) Authorizes a person over 21 years of age to manufacture beer
or wine (200 gallons per calendar year if there are two or more
adults in the household or 100 gallons if there is only one
adult in the household) for personal or family use, and not for
sale, without the need for a license or permit.
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3) Authorizes the removal of beer or wine from the premises
where made for personal or family use, for specified purposes,
(a) For use, including in a bona fide competition or judging
or a bona fide exhibition or tasting.
(b) For personal or family use.
(c) When donated to a nonprofit organization, as specified.
(d) Beer or wine may only be provided or served to the public
within a clearly identified area that includes, but is not
limited to, a physical barrier with a monitored point of entry.
Beer or wine produced by a licensed beer manufacturer or
winegrower shall not be provided or served to the public within
this area.
4) Provides that beer or wine may be donated to a nonprofit
organization for sale at fundraising events conducted solely by
and for the benefit of the nonprofit organization. The beer and
wine donated may be sold by the nonprofit organization only for
consumption on the premises of the fundraising event, under a
license issued by ABC to the nonprofit organization. The
donated and sold beer and wine shall bear a label identifying
its producer and stating that the beer or wine is homemade and
not available for sale or for consumption off the licensed
premises. The beer or wine is not required to comply with other
labeling requirements, as specified.
5) Specifies that a nonprofit organization established for the
purpose of promoting home production of beer or wine, or whose
membership is composed primarily of home brewers or home
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winemakers, shall not be eligible to sell beer.
6) Allows nonprofit organizations established for the purpose
of promoting home brewing to serve beer at fundraising events
subject to specified conditions. Only bona fide members of the
nonprofit organization may attend the event.
7) Existing law, known as the "tied-house" law, separates the
alcoholic beverage industry into three component parts of
manufacturer, wholesaler, and retailer. The original policy
rationale for this body of law was to prohibit the vertical
integration of the alcohol industry and to protect the public
from predatory marketing practices. Generally, other than
exemptions granted by the Legislature, the holder of one type of
license is not permitted to do business as another type of
licensee within the "three-tier" system.
FISCAL EFFECT: Unknown
COMMENTS:
Purpose of the bill : According to the author's office, homebrew
club members brew beer together, sample each other's beers, and
provide a forum for feedback and education. Homebrew clubs
provide an environment where new home brewers can come and learn
the art of brewing beer and are growing in popularity throughout
California. There are now more than 1,000 homebrew clubs across
the country, with more than 20 percent of those being in
California. California is host to numerous annual homebrew
competitions, including two judge centers for the AHA National
Homebrew Competition - the world's largest beer competition.
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Home brewing was not made legal in the United States until
February 1, 1979 under the federal Cranston Bill, named after
the California Senator Alan Cranston. Current law authorizes a
person over 21 years of age to manufacture beer or wine (200
gallons per calendar year if there are two or more adults in the
household or 100 gallons if there is only one adult in the
household) for personal or family use, and not for sale, without
the need for a license or permit.
The author's office points out that the number one reason for
brewing among American Homebrew Association (AHA) members is the
creative and artistic aspect of the hobby. Creating a
well-crafted beer at home is much like cooking a gourmet meal.
The process of brewing beer involves biochemistry and
thermodynamics. Many brewers also build some of their own
equipment, which can involve metallurgy, electrical engineering
and mechanical engineering.
According to the author, this bill is intended to give homebrew
clubs the ability to conduct meetings and competitions in ABC
licensed establishments and share their own home brewed beer
amongst themselves.
The author states that giving home brewer clubs the ability to
meet and hold competitions in licensed establishments will not
only benefit the club but also provide financial benefits to
authorized licensees who would be allowed to host the designated
event subject to specified conditions. It should be noted that
patrons of the authorized licensee that are not club members
would not be able to consume any home brewed beer.
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Prior legislation : AB 2609 (Nestande), Chapter 239, Statutes of
2014. Added a new provision to the ABC Act that allows
nonprofit organizations established for the purpose of promoting
home brewing to serve beer at fundraising events subject to
specified conditions; and provides that home brewed beer or wine
may only be provided or served within a clearly identified area.
AB 1425 (Governmental Organization Committee), Chapter 463,
Statutes of 2013. Among other things, allowed beer or wine made
for personal or family use to be donated to a non-profit
organization and used at a fundraising event conducted solely by
and solely for the benefit of the nonprofit organization and
only for consumption on the premises of the fundraising event,
provided that a license is issued by the ABC.
SB 607 (Wiggins), Chapter 28, Statutes of 2008. Authorized a
person to manufacture wine for personal or family use in an
amount not to exceed 100 or 200 gallons per household per
calendar year without the need for a license or permit, as
provided. Also, authorized the removal of wine, manufactured
for personal or family use, from the premises where manufactured
for use, including use at organized affairs, exhibitions or
competitions, such as homemakers' contests, tastings, or
judgings.
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REGISTERED SUPPORT / OPPOSITION:
Support
American Homebrewers Association
California Homebrewers Association
Opposition
None on file
Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531
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