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Small brewers operate within a highly regulated alcohol beverage industry; which is now entering a new era of rapidly changing industry dynamics. Recent court cases, legislative actions and accelerating consolidation among national and international large brewers has created a much more difficult business environment for independent craft brewers to operate in. Current rights that help protect small brewers are subject to change through legislative action by these increasingly large competing interests.
The Association works closely with the Legislature, the Governor's office and other industry groups to ensure the continued vitality of the craft brewing industry.
The CSBA is currently monitoring and actively involved in a number of issues and bills at the state Capitol.
There are currently two “CSBA Red Flag Issues"
- BOE Ruling: A recent ruling by the Board of Equalization that will reclassify as ‘distilled spirits’ any beer that has 0.5% added alcohol derived from flavorings. This ruling it slated to take effect October 1st, 2008. It will require every brewer in California to file a form with the BOE stating that each product produced does or does not contain over 0.5% added alcohol. This ruling may reclassify some craft beer as “distilled spirits” for tax purposes, dramatically increasing the cost of that brand to the consumer. For more information call the CSBA office.
- California Assemblyman Jim Beall, Jr., D-San Jose has proposed legislation that would increase the excise tax on beer which would raise the cost of a six-pack of beer by $1.80, or 30 cents per can or bottle.The bill's language has not yet been finished and CSBA is monitoring this closely.
Visit this page often to view current and active legislation that may impact the craft brewing industry.
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