BILL NUMBER: AB 1398	CHAPTERED  10/11/03

	CHAPTER  771
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2003
	APPROVED BY GOVERNOR  OCTOBER 10, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2003
	PASSED THE SENATE  AUGUST 28, 2003
	AMENDED IN SENATE  AUGUST 26, 2003
	AMENDED IN SENATE  JULY 15, 2003
	AMENDED IN ASSEMBLY  MAY 19, 2003
	AMENDED IN ASSEMBLY  APRIL 1, 2003

INTRODUCED BY   Assembly Member Vargas

                        FEBRUARY 21, 2003

   An act to amend Section 25664 of the Business and Professions
Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1398, Vargas.  Alcoholic beverages.
   The Alcoholic Beverage Control Act contains various provisions
regulating the application for, the issuance of, the suspension of,
and the conditions imposed upon, alcoholic beverage licenses by the
Department of Alcoholic Beverage Control.  That act also prohibits,
subject to a criminal penalty, the use, in any advertisement of
alcoholic beverages, of any subject matter, language, or slogan
addressed to and intended to encourage minors to drink the alcoholic
beverages.
   This bill would additionally prohibit any signage or flyers that
advertise establishments that serve alcoholic beverages to
individuals under the age of 21 years, if one of the establishment's
principal business activities is the selling of alcoholic beverages
and the advertisement expressly states that the jurisdiction in which
the establishment is located has a legal drinking age of under 21
years, or that individuals under the age of 21 years may patronize
the establishment.
   This bill would impose a state-mandated local program by changing
the definition of a crime.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares the following:
   (a) Alcohol is often a factor in motor vehicle accidents,
homicides, and suicides, which are the three leading causes of death
among youth between the ages of 10 and 24 years.
   (b) California's close proximity to Mexico presents a challenge in
preventing underage drinking because Mexico's legal drinking age
differs from that in California.
   (c) Establishments located in Mexico have targeted the youth
population in the United States, through the use of marketing
techniques, to encourage patronage at their bars and nightclubs.
   (d) Unfortunately, many times the marketing techniques of these
Mexican establishments are successful; federally funded studies have
confirmed that young people exposed to alcohol-related advertising
are more likely to consume alcohol.
   (e) Because the consumption of alcohol among those under the age
of 21 years creates a significant health and safety risk, California
has a substantial interest in engaging in efforts to reduce underage
drinking.
  SEC. 2.  It is the intent of the Legislature, in enacting this act,
to prohibit, in California, advertising promoting the consumption of
alcohol outside the United States that is aimed at individuals under
the age of 21 years by establishments that sell alcoholic beverages
as one of an establishment's principal business activities.
  SEC. 3.  Section 25664 of the Business and Professions Code is
amended to read:
   25664.  (a) (1) The use, in any advertisement of alcoholic
beverages, of any subject matter, language, or slogan addressed to
and intended to encourage minors to drink the alcoholic beverages, is
prohibited.
   (2) Signage or flyers advertising an establishment that serves
alcoholic beverages to individuals under the age of 21 years are
prohibited under paragraph (1) if one of the establishment's
principal business activities is the selling of alcoholic beverages,
and the advertisement expressly states that the jurisdiction in which
the establishment is located has a legal drinking age of under 21
years or that individuals under the age of 21 years may patronize the
establishment.
   (3) Nothing in this section shall be deemed to restrict or
prohibit any advertisement of alcoholic beverages to those persons of
legal drinking age.
   (b) The department may adopt rules as it determines to be
necessary for the administration of this section.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.