Wednesday, January 22, 2014

Do Georgia Politicians Hate Craft Beer?!?

First they screwed up homebrew laws, now possibly on-premise growler sales....

Ironically, in the homebrew arena federal laws are actually pretty common-sensical.  Homebrew "may be removed from the premises where made for personal or family use at organized affairs, exhibitions, or competitions such as contests, tastings, or judging".  Nice and simple.

Of course, never underestimate the ability of well intentioned politicians with no practical knowledge on an issue to screw things up.  Back in 2013, Georgia legislators passed HB99 with the intention of addressing the transportation and consumption outside of the one's household, an activity which previously was not mentioned in Georgia laws.  So one could debate whether this made transport technically illegal, or technically legal.  But either way, the state of Georgia had gotten along fine for decades without it being addressed.  

This where the politicians step in.  And as we know, the road to hell is paved with good intentions...
"Recently, House Bill 99 (HB99) passed and became law matching the federal production limits... It also attempted to legalize transportation and consumption outside of the household. However, instead of following the federal language and treating transportation of homebrew the same as transportation of commercial beer, it only allows for "transportation and delivery by the producer for use at home-brew special events in a quantity not to exceed 25 gallons". By default, these homebrew special events can only be held "at locations not otherwise licensed under this title" and a new special event permit is now required."
Awesome! From fairly unregulated to bureaucracy and required permits (which have to be issued by separate municipalities that probably don't have a process for this requirement) in one easy step!
"To add even more red tape, any homebrew leaving your household is now required to be labeled with personal information as well as the new permit number. No permit, no transportation. Prior to HB99, despite being technically illegal, transportation of homebrew was completely unregulated and monthly club meetings and contests were held at any venue that would tolerate them. No government oversight was needed or wanted.
[...]

HB99 appears to have been written to finally legitimize competitions, but ironically it seems to have had more of a negative impact. Municipalities with little or no knowledge of the aspects of homebrewing and little resources, time, or perceived benefit are now slated to draw up an ordinance allowing an event in their jurisdiction...and several annual competitions are in jeopardy with at least one having already been cancelled.
Thanks again helpful politicians!  Why did we even ask for your help?

If you think that is bad, let's move to the simple idea (in over 3 dozen other states) of letting craft brewers let their on-site customers take some fresh beer home with them.  Surely the politicians couldn't crew this up, right?

Well, initially in 2013 proposed pieces of legislation (HB 314/SB 174) actually took some straightforward approaches "...to allow packaging breweries and brewpubs to sell a limited amount of beer (only 288 ounces per person per day) for consumers to take home."  However, those bills languished in committee, and never got to a vote.  What did get passed however was the establishment of a "Senate Study Committee on Brewpubs and Alcoholic Beverage Tastings".  Yep, it was as bad as it sounds...  

And whodathunkit, the outcome of said committee was pretty craptacular.
"Despite an abundance of compelling testimony from Georgia craft brewers, the Study Committee Report favors prohibition-era, big-government regulation over modern free market principles. After three hearings held in August, September and October, the FINAL REPORT OF THE GEORGIA SENATE STUDY COMMITTEE ON BREWPUBS AND ALCOHOLIC BEVERAGE TASTINGS was released on Friday January 17, 2014. While the Committee Hearings provided an unprecedented opportunity for Georgia craft brewers to explain the craft beer industry to our State legislators and the public-at-large, the report reveals ongoing misunderstandings and shortcomings that must be addressed."
Would you like to see stupidity in action?  Check out how the report from this distinguished panel of public servants recommends that growler purchases at breweries and brewpubs should work.

  1. The growler contains malt beverages manufactured on the premises;
  2. The patron purchased and consumed a meal on the premises and consumed a portion of the growler containing 64 ounces of malt beverages manufactured on the premises;
  3. The partially consumed growler is capped by the patron and placed by the licensee or its employees in a bag or container that is secured in such a manner that it is visibly apparent if the bag or container has been subsequently opened or tampered with, and a dated receipt for the growler and meal shall be provided by the licensee and attached to the bag or container; and
  4. If transported in a motor vehicle, the bag or container with the capped growler is placed in a locked glove compartment, a locked trunk, or the area behind the last upright seat of a motor vehicle that is not equipped with a trunk.
Interesting.  I have never seen politicians actually recommend that people drink a portion of their alcohol purchase before driving home.

But seriously...in order to get a growler of fresh beer one must buy a meal AND drink a portion of said growler before leaving.  Where the heck did that come from?  Before I get more profane, I will let the Georgia Craft Brewers Guild (GCBG) to again express their frustration.
First, the recommendations of the Report entirely ignore packaging breweries. The Study Committee heard testimony that breweries in forty-two other states are allowed some form of beer sales to-go. Further testimony was provided on the bounty of economic and other benefits that would result from the proposed limited to-go business for packaging breweries. Yet, the Report is silent about whether Georgia's packaging breweries should be given a fair opportunity to strengthen their consumer relationships in the same way that out of state competitors can in their home states. The Legislature needs to address laws which impede our craft brewer's ability to effectively compete, before Georgia's craft beer industry loses additional ground to neighboring states.

Secondly, the “merlot-to-go” recommendation on page 20 of the Report for how brewpubs should be allowed to sell growlers shows an apparent lack of understanding of the realities of beer service and quality. The recommendation limits the consumer to only one 64oz growler, WHICH MUST BE PARTIALLY CONSUMED AT THE BREWPUB. The remainder can then be taken home if it is wrapped and sealed in a plastic bag. The report even goes so far to specify where the container can be placed in the patron's car, creating additional burdens and risk on consumers who simply want to enjoy their favorite beer in their own home. Not only would the recommendation require the patron to drink part of the growler before getting back on the road, it overlooks the fact that beer is not wine. A half-filled container of beer will be flat and oxidized before the consumer can return home. The “merlot-to-go” recommendation is unworkable, as written, and does not serve the interests of Georgia’s craft beer industry or the interests of Georgia’s adult consumers.

Another major flaw in the Report is the lack of any meaningful consideration of the consumer demand. The Senate Study Committee was provided with reports, analysis, news stories and other background material that indisputably proves the enthusiasm and sophistication of craft beer consumers in Georgia. The Report does not seem to understand or appreciate this sophistication and the recommendations seem to indicate that these sophisticated consumers in Georgia should just accept the status quo. This is unacceptable for many reasons and the Georgia Craft Brewers Guild will continue to fight to create the best possible environment for craft beer consumers throughout the state of Georgia. It's time to bring the laws governing Georgia's craft brewers up to speed with the rest of our country. The Georgia Craft Brewers Guild is opposed to the Study Committee’s recommendations and will continue to push for passage of HB 314/SB 174 into law.
So....while one can buy a growler of their favorite local beer at growler stations throughout the state (where by the way quality of the beer cannot be guaranteed) and take it all home.  But if they buy an identical growler at that beer's brewery, they must buy a meal and drink some before they go home.  Makes perfect sense!

I don't get why the pols are making things so complicated.  It is not like this is a real threat to the three-tier system (Certainly not here in Augusta). And has been shown in other states in the region, updating these very types of laws can have an immediate and positive affect on the state's brewing industry, and by extension, its tax base.
Changes in State Law Fueled S.C.’s Brewery Boom

"No matter where you go in South Carolina, there’s little doubt that craft beer is experiencing something of a boom. “South Carolina is right on the edge of an explosion,” says Nick McCormac, who blogs about South Carolina beers at drinkblogrepeat.com. 

So, what was the spark that lit that explosion? Two words: Pint Bill. On June 6 of last year, Gov. Nikki Haley signed into law an amendment that granted microbreweries the ability to sell up to 48 ounces of beer to patrons on site instead of limiting their intake to free samples, giving breweries a much-needed up-front source of income beyond selling through distributors. 

While it took a coalition of brewers and enthusiasts lots of hard work to get the bill created and pushed through, the results were immediate and dramatic. “Already [since the Pint Bill passed] there are about 10 different breweries of various sizes and in various locations in the planning stages, and that’s just going into 2014,” McCormac notes" 
Alas this type of progress, as has been advocated by the GCBG, seems to elude the narrow minds of Georgia state legislators.  One can only hope that sanity will prevail, and the original proposed text of the House and Senate bills will become law, without the idiotic recommendations of the esteemed Senate Study Committee on Brewpubs and Alcoholic Beverage Tastings...

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