Craft Beverage Modernization and Tax Reform Act of 2019 (H.R. 1175)

This bill updates and improves the tax rules related to alcoholic beverages such as beer, wine, and distilled spirits. Its goal is to support small and craft beverage producers by making the tax system fairer and simpler, while also enhancing enforcement and regulatory processes.

Key Points Explained in Simple Terms

1. Permanent Tax Rules for Production Time

The bill clarifies that the time alcoholic drinks spend aging (like beer, wine, and spirits that get better with age) does not count as part of the production period when calculating certain tax benefits. This encourages aging and higher-quality products.

2. Reduced Excise Taxes on Beer

Taxes on beer are lowered, especially for smaller brewers. For example:

• A lower tax applies to the first 6 million barrels of beer a brewer produces or imports.
• Special rules let certain importers qualify for these lower taxes if they follow specific guidelines.

3. Easier Transfers of Beer Between Breweries

The bill makes it easier for breweries to move beer between bonded (licensed) facilities without immediately paying taxes. This helps breweries collaborate or manage their production more flexibly.

4. Lower Taxes on Certain Wines

Similar to beer, excise taxes on wine are lowered, especially benefiting smaller wine producers. It also includes lower tax rates for hard cider and streamlines credit provisions for importers.

5. Updated Alcohol Content Levels for Tax Purposes

The alcohol percentage level used to decide tax rates on wine is increased from 14% to 16%, reflecting modern beverage trends.

6. Definitions and Simplifications

• The bill refines what counts as "mead" and low-alcohol wine for tax purposes.
• It simplifies recordkeeping and reporting rules for producers.

7. Lower Taxes on Distilled Spirits

Excise taxes on distilled spirits (like whiskey and vodka) are reduced permanently, helping smaller producers.

8. Use of Natural Ingredients Allowed

The bill requires regulations to recognize that wholesome fruits, vegetables, and spices safe for human consumption are traditional and acceptable ingredients for fermented beverages (like beer and wine). This supports ingredient flexibility for craft producers.

9. More Funding for Alcohol and Tobacco Tax and Trade Bureau (TTB)

The bill authorizes extra funds ($15 million for each of fiscal years 2019 and 2020) to help the TTB:

• Process formula and label applications faster, so new products get approved quickly.
• Enforce rules preventing unfair trade practices.
• Speed up permitting for smaller, non-industrial alcohol producers and distributors.

Summary

In short, this bill aims to modernize the taxation system on alcoholic beverages to better support craft brewers, winemakers, and distillers by lowering taxes, clarifying tax rules, simplifying regulations, and providing more resources for regulatory agencies. The changes help smaller producers compete and innovate, while ensuring good oversight and fair market practices.

The Extreme Risk Protection Order Act of 2019

This bill, officially known as the Extreme Risk Protection Order Act of 2019, aims to support efforts by State, Tribal, and local governments to remove access to firearms from individuals who pose a danger to themselves or others. The bill was introduced by Mr. Salud Carbajal, Mr. Brian Fitzpatrick, Mr. Donald Beyer, Mr. Ted Deutch, and Ms. Julia Brownley on February 14, 2019, and referred to the Committee on the Judiciary.

Key Definitions

• Eligible Entity: Refers to a State, Indian Tribe, or unit of local government or other public/private entity that enacts legislation described in section 4, complies with the requirements of section 4, and certifies the use of grant funds and allocation for law enforcement training.
• Extreme Risk Protection Order: Refers to a written order or warrant issued by a State or Tribal court or even signed by a magistrate with the aim of reducing the risk of firearm-related death or injury. The order prohibits an individual from having, owning, purchasing, possessing, or receiving a firearm or requires the removal/surrender of firearms from the individual.
• Firearm: Refers to any weapon that meets the definition provided in section 921 of title 18, United States Code.
• Indian Tribe: Has the same meaning as defined in section 1709 of the Public Safety and Community Policing Act of 1994.
• Law Enforcement Officer: Refers to a public servant authorized by State, local, or Tribal law to engage in or supervise the prevention, detection, investigation, or prosecution of an offense, or to supervise sentenced criminal offenders.
• Petitioner: An individual authorized by State or Tribal law to petition for an extreme risk protection order.
• State: Includes a State, the District of Columbia, the Commonwealth of Puerto Rico, or any other territory or possession of the United States.
• Unit of Local Government: Refers to an entity as defined in section 901 of the Omnibus Crime Control and Safe Streets Act of 1968.

Extreme Risk Protection Grant Program

The Office of Community Oriented Policing Services of the Department of Justice will establish a grant program to assist eligible entities in implementing the legislation described in section 4. Grants will be awarded based on the availability of funds and can be used for various purposes, including enhancing law enforcement capacity, training personnel, providing technical assistance, and raising public awareness.

Requirements for National Extreme Risk Protection Order Law

The legislation described in section 4 should meet certain requirements, which include allowing individuals (including law enforcement officers) to submit applications for extreme risk protection orders to a State or Tribal court. The court must hold a hearing within 30 days of receiving an application and issue an order if it finds by a preponderance of evidence that the respondent poses a danger of harm to themselves or others. The legislation should also provide for ex parte (without notice) orders, storage of firearms removed under the order, notification to appropriate authorities, and confidentiality protections of personally identifiable information.

Federal Firearms Prohibition

The bill proposes amendments to section 922 of title 18, United States Code, to include court orders that prohibit an individual from possessing firearms or require the removal/surrender of firearms. The court order must be issued in compliance with due process rights and based on a finding that the individual poses a danger of harm to themselves or others by having access to a firearm.

Full Faith and Credit

Any extreme risk protection order issued under a State or Tribal law will be given full faith and credit by the court of another State or Indian Tribe. The enforcing State or Tribe will enforce the order as if it were its own.

Severability

If any provision of this Act or its amendments is held invalid, the rest of the Act and amendments will remain unaffected.