There has been a lot of discussion on Mash831 email about the laws associated with the AB-2609 Home brewers and home winemakers, and about the legality of having homebrew events at local establishments. Hopefully this will clear things up, or at least promote some discussion.
AB-2609: Amends the law 23356.2 of the Business and Professional Code to allow nonprofit organizations established for the purpose of promoting home production of beer the ability to have fundraisers solely for the benefit of the nonprofit organizations. The big issue here was the California Homebrewers Association bi-annual events; the old law pretty much prohibited their events – that is fixed now.
The law also says we are allowed to hold fundraisers (if we aren’t a licensed non-profit organization) for nonprofit organizations not necessarily established for the purpose of promoting home production of beer. However, we will need the non-profit organization to obtain a license from the ABC, and we must donate the beer to the nonprofit organization so they can sale it for the fundraising event. This license costs about $25.00 per event (subject to change by the ABC).
Finally, the law says we can remove our beer product from our premises for bona fide competitions, judging or bona fide exhibitions or tastings. “Bona fide” means: “Good faith, Honest; genuine, actual, authentic, acting without the intentions of defrauding.” This is a bit vague, and doesn’t really clear up the question of whether we could have club events at a local bar or restaurant. Here’s what I found:
Section 23399.1 says:
No license or permit shall be required for the serving and otherwise disposing of alcoholic beverages where all of the following conditions prevail:
1. That there is no sale of an alcoholic beverage.
2. That the premises are not open to the general public during the time alcoholic beverages are served, consumed or otherwise disposed of.
3. That the premises are not maintained for the purpose of keeping, serving, consuming or otherwise disposing of alcoholic beverages.
Provided, however, that nothing in this section shall be construed to permit any person to violate any provision of the Alcoholic Beverage Control Act.
Section 23399.2 says:
Premises for which a special on sale general license is issued may be operated only as a club by an organization which meets all the requirements of Section 23037, or by an organization which meets all of such requirements except that it is operated for pecuniary gain, or its property is not owned by its members, or both.
Section 23037 says:
“Club” means a corporation or association which is the owner, lessee, or occupant of an establishment operated solely for objects of a social or athletic nature but not for pecuniary gain, having a bona fide membership list, and the majority of the members of which pay dues at least once in every year, and the property as well as the advantages of which belong to the members, and which sells alcoholic beverages only to its members and its bona fide guests. A guest is defined as a person who is actually a houseguest, or a person whose presence as a guest is in response to a specific invitation for the special occasion.
So in summary, this is how I interpret this:
1. If we want to hold fundraiser for our club, we need to become a non-profit organization.
2. If we want to hold fundraiser for other non-profit organizations, we need to have them obtain a license from the ABC so we can donate our product for sale to support the fundraiser.
3. If we want to have meetings at local supporting pubs, restaurants, breweries and other establishments that have a on sale general license to sell beer, we have to
A. be a club with a bona fide membership list,
B. have the majority of the members pay dues at least once in every year,
C. just to be sure, and like that if we were supporting a non-profit organization not necessarily established for the purpose of selling beer, label our beers identifying the producer (Mash831) and stating that the beer is homemade and is not available for sale or for labeling requirements under ABC law, and,
D. clearly section off the premises where we hold our club events and only allow club members on the club list to attend (i.e. no general public). In this capacity we should have a club list available, and wrist bands at all of our events.
Obviously we are all committed to running this club by the California Law and ABC guidelines. In addition, I’m sure none of us wants to jeopardize any business that supports our club and events. I think this is a good summary of what we can do; however, I’m no lawyer. I will continue to work with the ABC to gain more knowledge. In the meantime, please provide your input and discussion on this site. I’m sure we have some pretty smart members out there that can help.
Thanks, I look forward to seeing you at the next event. Keep an eye out on the website.