I'm not a lawyer either, but I'm with Denny - I think if anyone takes a look at the way they are doing things it will be deemed illegal. "Reimbursing for ingredients" is paying for beer in my view. The law isn't against paying people to brew, it is against selling homebrew. If they have sacks of grains and hops delivered to the brewers house that might be more acceptable, although it is still a material gain.