BILL ANALYSIS �
AB 2609
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Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 2609 (Nestande) - As Amended: March 28, 2014
SUBJECT : Home brewers and home winemakers.
SUMMARY : Allows nonprofit organizations that either promote
home brewing or home winemaking, or that are primarily composed
of home brewers or home winemakers, to sell beer or wine at
fundraising events subject to specified conditions, including
requiring an educational component to the event and limiting the
nonprofit organization to "2 events" that sell wine or beer
pursuant to this authorization per year. Specifically, this
bill :
1) States 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 be eligible to sell beer or wine subject to
the following conditions:
(i)The beer or wine for sale is donated by home brewers or
home winemakers.
(ii)The nonprofit organization shall be issued no more than
two permits per calendar year for the sale of beer or wine
pursuant to this subdivision.
(iii)The nonprofit organization shall display a printed
notice at the event that states that home brewed beer and
homemade wine are not regulated products subject to health and
safety standards.
(iv)The event shall have an educational component that
includes instruction on the
subject of beer or wine, including, but not limited to, the
history, nature, values, and
characteristics of beer and wine, the use of beer and wine
lists, and the methods of
presenting and serving beer and wine.
2) Specifies that a nonprofit organization established for the
purpose of promoting home production of beer or wine, or whose
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membership is composed primarily of home brewers or home
winemakers may charge an entrance fee at a fundraising event
conducted solely by, and for the benefit of, the nonprofit
organization. This charge shall not constitute the sale of beer
or wine, as defined.
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 or occupation taxes for this purpose.
2)Authorizes a person to manufacture beer or wine for personal
or family use without the need for a license or permit, as
provided.
3)Authorizes the removal of beer or wine from the premises where
made for personal or family use, for specified purposes,
including at bona fide competitions or exhibitions.
4)Authorizes these products to be removed from the premises when
donated to a nonprofit organization for sale at a fundraising
event, but excludes from this authorization nonprofit
organizations that either promotes home brewing or home
winemaking or that are primarily composed of home brewers or
home winemakers, as specified.
5)Authorizes beer or wine made for personal or family use to be
donated to a nonprofit organization and used at a fundraising
event conducted solely by and solely for the benefit of the
nonprofit organization, as specified. Donated beer and wine
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, as defined.
6)Requires beer or wine donated to a nonprofit organization to
be labeled with designated information, and would otherwise
exempt it from complying with existing labeling requirements.
7)Separates the alcoholic beverage industry into three component
parts of manufacturer, wholesaler, and retailer, known as the
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"tied-house" law. 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, this bill is
intended to correct an unintended consequence in AB 1425
(Governmental Organization Committee), Chapter 463, Statutes of
2013.
In 2013, ABC, had concluded that current 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 1425 was intended to
revise the law pertaining to a person who manufactures beer or
wine for personal or family use without the need for a license
or permit. The bill authorized the product to be removed from
the premises where made only when used in a bona fide
competition or exhibition, for personal or family use, or when
donated to a nonprofit organization for sale at a fundraising
event, excluding nonprofit organizations that either promote
home brewing or home winemaking or that are primarily composed
of home brewers or home winemakers, as specified.
AB 2609 seeks to revise 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 gather
and participate in exhibitions, judging, tastings or
competitions.
This measure limits the number of permits that can be issued for
such events to two (2) per each non-profit, per calendar year.
The bill requires an educational component per event, and states
that the entity sponsoring the event must provide notice to
attendees that the home brew beer at the event is not subject to
certain health and safety standards as other manufactured
beverages.
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Before the passage of AB 1425 in 2013, the California
Homebrewers Association (CHA) held an annual event for their
members to gather and share their craft. These events featured
judging, tastings, educational components, and provided members
the opportunity expand their knowledge about home brewed beer.
CHA had been issued permits by ABC to host such events.
Unfortunately, in light of the enactment of AB 1425, the
Southern California Home Brew Festival had to be cancelled this
year. Additionally, current law might prevent the 2015 National
Homebrewers Conference from being held in San Diego.
The author notes that home brewed beer is not subject to the
same health and safety standards as commercially produced
alcoholic beverages. As such, the law regarding consumption and
dispersion should be more restrictive. AB 2609 would further
allow non-profit organizations whose members are comprised of
home brewers to share their craft with other association members
on a limited basis while adhering to a specific provision within
the Act.
Policy consideration : To achieve the stated purpose of the
bill, the author should consider the following amendments to
Business and Professions Code Section �23356 (3) and (B): (1)
the exemption will be for a non-profit organization established
for the purpose of promoting home production of beer only; (2)
clarify that no sell may occur at the event; (3) delete
reference that a nonprofit home brewer organization may charge
an entrance fee to the event; 4) state that only bona fide
members of the home brewer organization may participate in the
event; and 5) no individual may be solicited or sign up to be a
member on the day of the designated event and the non-profit
organization must provide ABC with a list of membership
attendees two days before the event.
Prior legislation : AB 1425 (Governmental Organization
Committee), Chapter 463, Statutes of 2013. Among various
provisions, amended BPC Section �23356.2 by consolidating
separate beer and wine provisions into one designated code
section, and allowing beer or wine made for personal or family
use to be donated to a nonprofit 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 ABC.
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AB 607 (Wiggins), Chapter 28, Statutes of 2008. Allowed an
individual to make up to 100 gallons of wine per year for
personal or family consumption without a license or permit if he
or she is the only adult in the household or 200 gallons per
year if there is at least one other adult in the household.
Furthermore, the bill allowed individuals to offer their wine at
fairs, exhibitions or competitions.
REGISTERED SUPPORT / OPPOSITION :
Support
California Homebrewers Association
American Homebrewers Association
Numerous letters from the public
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531