BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 2172 Hearing Date: 6/28/2016
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|Author: |Jones |
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|Version: |6/8/2016 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Arthur Terzakis |
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SUBJECT: Homebrewery clubs: meetings: competitions
DIGEST: This bill permits the removal and use of home brewed
beer in connection with a homebrewers club meeting or home
brewed beer competition that is held on the premises of an
authorized licensee.
ANALYSIS:
Existing law:
1)Establishes the Department of Alcoholic Beverage Control (ABC)
and grants it exclusive authority to administer the provisions
of the 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.
3)Authorizes the removal of beer or wine, manufactured for
personal or family use, from the premises where manufactured
only under the following circumstances: (1) for use, including
AB 2172 (Jones) Page 2 of ?
tasting by judges, in a bona fide competition or exhibition;
(2) for personal or family use; and, (3) when donated to a
nonprofit organization for sale at fundraising events
conducted solely by and for the benefit of the nonprofit and
pursuant to a license issued by ABC to the nonprofit entity,
and subject to specified conditions.
4)Separates the alcoholic beverage industry into three component
parts or tiers (referred to as the "tied-house" law or
"three-tier" system), of manufacturer (including breweries,
wineries and distillers), wholesaler, and retailer (both
on-sale and off-sale). The original policy rationale for this
body of law was to: (a) promote the state's interest in an
orderly market; (b) prohibit the vertical integration and
dominance by a single producer in the market place; (c)
prohibit commercial bribery and to protect the public from
predatory marketing practices; and, (d) discourage and/or
prevent the intemperate use of alcoholic beverages.
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.
5)Defines an "on-sale" licensee as authorizing the sale of all
types of alcoholic beverages: namely, beer, wine and distilled
spirits, for consumption on the premises (such as at a
restaurant or bar. An "off-sale" license authorizes the sale
of all types of alcoholic beverages for consumption off the
premises in original, sealed containers.
This bill:
1)Permits beer manufactured for personal or family use by a
person over the age of 21 to be removed from the premises
where the beer was made for a homebrewers club meeting or bona
fide home brewed beer competition that is held on the premises
of an authorized licensee.
2)Provides that homebrewers may exchange containers of home
brewed beer during the club meeting or beer competition.
Also, permits home brewed beer made by the club members to be
consumed by club members while on the licensed premises during
the club meeting or by competition organizers, judges, and
stewards on licensed premises during a bona fide home brewed
beer competition.
AB 2172 (Jones) Page 3 of ?
3)Makes it explicit that patrons of the authorized licensee that
are not club members, competition organizers, competition
judges, or competition stewards shall not consume any home
brewed beer.
4)Stipulates that the authorized licensee must designate which
tables within the licensed premises will be used by club
members during the club meeting or beer competition.
5)Defines "authorized licensee" as a licensee that holds an
on-sale beer license, an on-sale beer and wine license for a
bona fide public eating place, an on-sale beer and wine for
public premises license, an on-sale general license for a bona
fide eating place, a club license, a veterans' club license,
an on-sale general brew pub license, an on-sale general
license for public premises, a beer manufacturer's license, or
a small beer manufacturer's license.
Background
Purpose of AB 2172. The author's office states that this bill
is intended to give home brew clubs the ability to conduct
meetings and competitions in licensed establishments and share
their home brewed beer amongst themselves at such meetings. The
author's office believes that allowing homebrew clubs to meet at
licensed establishments (such as brewpubs) not only gives these
clubs alternative meeting options, it also provides a
significant financial benefit to licensed establishments in
light of the fact that homebrewers are some of the biggest
supporters of craft beer.
Prior/Related Legislation
AB 2609 (Nestande, Chapter 239, Statutes of 2014) authorized the
removal and use of home brewed beer or homemade wine in
connection with a bona fide competition or judging or a bona
fide exhibition or tasting. The bill also allowed nonprofit
organizations that promote home brewing to serve beer at
fundraising events subject to specified conditions, including
requiring an educational component to the event and limiting the
nonprofit organization to two of these types of events that
serve beer pursuant to this authorization per year.
AB 1425 (Governmental Organization Committee, Chapter 463,
AB 2172 (Jones) Page 4 of ?
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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
American Homebrewers Association
California Homebrewers Association (sponsor)
And, letters from homebrewers throughout the State
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: Proponents note that there are currently
over 150,000 homebrewers in California, with well over 200
organized clubs meeting on a regular basis. Proponents state
that home brewing is a hobby that has seen rapid growth
nationwide for more than a decade and the participants in this
hobby are primarily well educated members of the middle to
upper-middle class, including many that have started small
businesses in this country. Proponents also point out that part
of the challenge in home brewing is to elicit feedback from
others regarding the quality of the beer being produced.
Proponents claim that virtually all of the 815 homebrew supply
shops operating in the United States were started by
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homebrewers, and most of this nation's 4000 small, independent
breweries were founded by homebrewers. Proponents emphasize
that a vibrant home brewing community supports these small
businesses, as well as the farmers that grow the barley and hops
used to make beer.