BILL ANALYSIS Ó
AB 2172
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CONCURRENCE IN SENATE AMENDMENTS
AB
2172 (Jones)
As Amended June 8, 2016
Majority vote
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|ASSEMBLY: |76-0 |(April 28, |SENATE: |36-0 |(August 18, |
| | |2016) | | |2016) |
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Original Committee Reference: G.O.
SUMMARY: 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.
The Senate amendments:
1)Provide beer may be removed from the premises where made in
connection with a bona fide home brewed beer competition that
is held on the premises of an authorized licensee.
Homebrewers may exchange containers of home brewed beer during
a bona fide home brewed beer competition.
2)Provide home brewed beer made by the club members may be
consumed by club members while on the licensed premises during
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the club meeting or by competition organizers, competition
judges, and competition stewards on licensed premises during a
bona fide home brewed beer competition.
3)Provide 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)Provide the authorized licensee shall designate, by signage or
other item, which tables within the licensed premises shall be
used by club members during a bona fide home brewed beer
competition.
5)Make technical and clarifying changes.
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.
3)Authorizes the removal of beer or wine from the premises where
made for personal or family use, for specified purposes,
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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
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.
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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: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
Purpose of the bill: 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.
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.
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Proponents claim that virtually all of the 815 homebrew supply
shops operating in the United States were started by
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.
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.
Analysis Prepared by:
Eric Johnson / G.O. / (916) 319-2531 FN:
0003700
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