From: jdecarlo@mitre.org (John DeCarlo)
Subject: Re: Brewing With Friends
Organization: MITRE Corporation, McLean  VA
Date: Fri, 20 Nov 1992 20:05:20 GMT

In article <Nov17.173838.57900@yuma.ACNS.ColoState.EDU>
 copeland@lamar.ColoState.EDU (Jeffrey Copeland) writes:

>>In article <1992Nov13.053333.6501@nmt.edu>,
>> jking@nmt.edu ('Admiral JC') writes:
>>|>   OUr Homebrew club was talking this evening and the following question
>>|> came up:
>>|> 
>>|>  Given the current set of US Homebrew laws, a friend of mine came over
>>|> to my house (which I rent) and together we brewed a batch of beer (My 
>>|> hardware his software (malt, hops, dextrose, etc.)).  Everything is 
>>|> done at my house and when said beer is finished he takes home most of 
>>|> it (I keep a six or so for the trouble).
>>|> 
>>|>     Is this legal or does it run afoul of some regulation?

>I believe that there is an allowance for this under federal regs.
>Someone (any homebrewing lawyers out there) probably should get the federal
>statutes on homebrewing into the FAQ. The state laws would also be good.
>
>Any takers for the project?

The only two questions in my mind are 
1) whether any state or county lines are being crossed that might cause 
problems, and 2) how the federal limits are construed (were those 5 gallons 
marked off against your household limit or the friend's?).  Of course, in 
practice this is not likely to be a big problem.

As for federal laws, there is only one applicable that I know of, that 
change in the tax laws that makes homebrewers exempt from all the taxes and 
associated regulations/paperwork/payments that other brewers have to comply 
with.

Here is what I have on that:

 
IN THE SENATE OF THE UNITED STATES, AN AMENDMENT 

Intended to be proposed by Mr Cranston to H.R. 1337, an Act 

Purpose: To provide equal treatment in the regulation of the home production of
beer and wine

Viz: At the appropriate place, strike all that follows after "Sec. 2" and
insert in lieu thereof the following: 

(a) EXEMPTION FROM TAX ON WINE.-- Section 5042 (a) (2) of the Internal Revenue
Code of 1954 (relating to production of wine for personal consumption) is
amended to read as follows: 

(2) WINE FOR PERSONAL OR FAMILY USE.-- Subject to regulations
prescribed by the Secretary--

(a) EXEMPTION.-- Any adult may, without payment of tax
produce wine for personal or family use and not for sale.

"(b) LIMITATION.-- The aggregate amount of wine exempt from
tax under this paragraph with respect to any household
shall not exceed--

"(1) 200 gallons per calendar year if there are 2
or more adults in such household, or

only 1 adult  in such household.

"(c) ADULTS.-- For purposes of this paragraph, the term
'adult' means an individual who has attained 18 years of
age.".
 
(b) EXEMPTION FROM TAX ON BEER.-- 
 
(1) IN GENERAL.-- Section 5053 of such Code (relating to exemptions
from excise tax on beer) is amended by redesignating subsection (e)
as subsection (f) and by inserting after subsection (d) the following
new section:
 
"(e) BEER FOR PERSONAL OR FAMILY USE.-- Subject to
regulations prescribed by the Secretary any adult may,
without payment of tax, produce beer for personal or family
use and not for sale.  The aggregate amount of beer exempt
from tax under this subsection with respect to any
household shall not exceed--
 
"(l) 200 gallons per calendar year if there are 2
or more adults in such household, or
"(2) 100 gallons per calendar year if there is
only 1 adult in such household.

For purposes of this subsection, the term 'adult' means an individual
who has attained 18 years of age or the minimum age, if any, estab
lished by law applicable in the locality in which the household is
situated for individuals to whom beer may be sold, whichever is
greater."

(2)  ILLEGALLY PRODUCED BEER.--

(A) Section 5051 of such Code (relating to imposition and rate of
tax) is amended by adding at the end thereof the following new
subsection:
 
"(c) ILLEGALLY PRODUCED BEER.-- The production of any beer
at any place in the United States shall be subject to tax
at the rate prescribed in subsection (a) and such tax shall
be due and payable as provided in section 5054 (a) (3)
unless--

"(l) such beer is produced in a brewery qualified under the
provisions of subchapter G, or "(2) such production is
exempt from tax under section 5053 (e) (relating to beer
for personal or family use).".
 
(B) Section 5054 (a) (3) of such Code (relating to illegally produced
beer) is amended to read as follows:

"(3) ILLEGALLY PRODUCED BEER.-- The tax on any beer
produced in the United States shall be due and payable
immediately upon production unless--
 
"(A) Such beer is produced in a brewery qualified under the
provisions of subchapter G, or "(B) such production is
exempt from tax under section 5053 (e)	(relating to beer
for personal or family use).".

(3) DEFINITION OF BREWER.-- Section 5092 of such Code (defining
brewer) is amended to read as follows:
 
"SEC. 5092. DEFINITION OF BREWER:

"Every person who brews beer (except a person who produces
only beer exempt from tax under section 5053 (e)) and every
person who produces beer for sale shall be deemed to be a
brewer.".
 
(4) EXEMPTION FROM CERTAIN PROVISIONS RELATING TO DISTILLING
MATERIALS - Section 5222 (a) (2) (C) of such Code (relating to
certain exemptions) is amended by striking out "; or" and inserting
in lieu thereof "or 5053 (e); or".

(5) PENALTY FOR UNLAWFUL PRODUCTION OF BEER.--
 
(A) Section 5674 of such Code (relating to penalty for unlawful
removal of beer) is amended to read as follows:
 
"SEC. 5674. PENALTY FOR UNLAWFUL PRODUCTION OR REMOVAL OF
BEER.

"(a) UNLAWFUL PRODUCTION.-- Any person who brews beer or
produces beer shall be fined not more than $1,000, or
imprisoned not more than 1 year, or both, unless such beer
is brewed or produced in a brewery qualified under
subchapter G or such production is exempt from tax under
section 5053 (e) (relating to beer for personal or family
use).

"(b) UNLAWFUL REMOVAL.-- Any brewer or other person who
removes or in any way aids in the removal from any brewery
of beer without complying with the provisions of this
chapter or regulations issued pursuant thereto shall be
fined not more than $1,000, or imprisoned not more than 1
year, or both.".
 
(B) The item relating to section 5674 in the table of sections for
part III of subchapter J of chapter 51 of such Code is amended to
read as follows:
 
"Sec. 5674. Penalty for unlawful production or removal of beer.".

(c) EFFECTIVE DATE.-- The amendments made by this section shall take effect on
the first day of the first calendar month which begins more than 90 days after
the date of the enactment of this Act.

John DeCarlo, MITRE Corporation, McLean, VA--My views are my own
Fidonet:  1:109/131  Internet:  jdecarlo@mitre.org
Newsgroups: rec.crafts.brewing