BILL NUMBER: AB 345	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Saldana and Beall

                        FEBRUARY 14, 2007

   An act to add Article 4 (commencing with Section 25685) to Chapter
16 of Division 9 of the Business and Professions Code, and to amend
Section 32230 of the Revenue and Taxation Code, relating to alcoholic
beverages, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 345, as introduced, Saldana. The Underage Drinking Prevention
Act of 2007.
   The Alcoholic Beverage Control Act, administered by the Department
of Alcoholic Beverage Control, regulates the sale and distribution
of alcoholic beverages and the granting of licenses for the
manufacture, distribution, and sale of alcoholic beverages within the
state. The act also establishes various annual fees for different
categories of licenses of the department.
   This bill would establish the Underage Drinking Prevention Act of
2007, and would impose a surcharge in varying amounts on the existing
fees paid by specified licensees, and make a continuous
appropriation of these amounts to the Department of Alcoholic
Beverage Control and the State Department of Alcohol and Drug
Programs, for specified purposes, including the prevention of
underage drinking of, and access to, alcoholic beverages by minors.
   This bill would require the State Department of Alcohol and Drug
Programs to report to the Legislature, on or before January 1, 2008,
and every January 1 thereafter, on the impact of alcohol marketing on
youth and on specified topics regarding alcoholic beverages with
special appeal to minors, as provided.
   This bill would result in a change in state taxes for the purpose
of increasing state revenues within the meaning of Section 3 of
Article XIII A of the California Constitution, and thus would require
for passage the approval of 2/3 of the membership of each house of
the Legislature.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Article 4 (commencing with Section 25685) is added to
Chapter 16 of Division 9 of the Business and Professions Code, to
read:

      Article 4.  The Underage Drinking Prevention Act of 2007


   25685.  This article shall be known and may be cited as the
Underage Drinking Prevention Act of 2007.
   25686.  The Legislature finds and declares all of the following:
   (a) Problems associated with alcohol consumption by those under
the minimum drinking age of 21 years constitute a public health and
safety emergency in California and the nation. The prevention of
underage alcohol consumption is, therefore, an urgent priority for
the people of California.
   (b) The earlier a young person begins to consume alcoholic
beverages, the more likely it is that he or she will experience
alcohol problems throughout his or her life. Research has shown that,
compared with persons who wait until 21 years of age or older to
begin drinking, those who start to drink before 15 years of age are
at a far greater risk of alcohol problems later in life, including
alcohol-related motor vehicle crashes, assault, and other types of
injuries. Recent increases in alcohol consumption and binge drinking
among underage girls, including girls under the age of 15 years,
emphasize the need for new initiatives to prevent youth alcohol
problems.
   (c) The sale, transfer, or furnishing of alcoholic beverages to
minors and the public possession of alcohol by minors is illegal in
California. Enforcement of laws designed to prevent access and
consumption of alcoholic beverages by minors is an urgent priority
for the state.
   (d) California and its governmental subdivisions have initiated
numerous programs and public awareness campaigns to prevent alcohol
problems in minors and to alert citizens to the dangers associated
with underage drinking. These efforts, which are augmented by
programs conducted by nongovernmental organizations and individuals,
are not sufficiently addressing the public health emergency
associated with underage drinking.
   (e) Research has established that exposure to alcohol advertising
influences young people's beliefs and intentions regarding alcoholic
beverages and that increased exposure to alcohol advertising results
in increased underage alcohol consumption.
   (f) Research has also established that some alcohol advertisements
have images, themes, slogans, and other content that are highly
attractive to young people and encourage them to consume alcoholic
beverages.
   (g) Alcoholic beverage products that research shows are highly
attractive to young people, including girls under the age of 15
years, are advertised and sold in California. These products,
sometimes referred to as flavored alcoholic beverages or "alcopops,"
have added flavorings and sweeteners. "Alcopops" have a relatively
low alcohol content that makes them similar in taste to fruit drinks,
sodas, and other nonalcoholic beverages popular with young people.
Marketing of these products includes traditional forms of
advertising, product placement, labeling, and nontraditional
marketing techniques such as text messaging and Internet promotions,
including advertising on Web sites popular with youth.
   (h) New alcohol products, in addition to alcopops, that have
potential appeal to young people are being introduced into the market
each year. These include gelatin-based products, food-based alcohol
products, alcohol mists, and beverages that contain alcohol,
caffeine, and other additives that may facilitate underage binge
drinking. Product labeling and packaging in some cases make it
difficult to determine whether these products contain alcohol and, if
they do, their alcohol content.
   (i) Educators, parents, community leaders, and the public are not
familiar with the types and extent of risks to the health and safety
of California's young people associated with alcopops and other new
alcohol products with potential appeal to young people.
   (j) Underage drinking cost Californians an estimated $7.3 billion
dollars in 2005.
   (k) In 2005, underage drinkers consumed 12.4 percent of all
alcohol sold in California, totaling $2.3 billion dollars in sales.
These sales provided profits of approximately $1.1 billion dollars to
the alcohol industry.
   (l) The alcohol industry paid $__ dollars in taxes and licensing
fees in 2005, a small fraction of the revenue and profits received
from alcohol sales derived from underage drinkers.
   25688.  In addition to fees otherwise provided for in this
division, the following amounts shall be paid to the department by
holders of the following types of licenses:

(a)    Beer manufacturer (Type 1)........    $5,000
(b)    Distilled spirits manufacturer        $5,000
        (Type 4)..........................
(c)    Beer and wine wholesaler (Type        $2,500
        17)...............................
(d)    Distilled spirits wholesaler          $2,500
        (Type 18).........................
(e)    Retail package off-sale beer and        $100
        wine (Type 20)....................
(f)    Retail package off-sale general         $100
        license (Type 21).................
(g)    On-sale beer (Type 40 & Type 61)..      $100
(h)    On-sale beer and wine eating            $100
        place (Type 41)...................
(i)    On-sale beer & wine (Type 42).....      $100
(j)    On-sale general license (Type 47,       $100
        48, 57, 70, 75, 78)...............


   Payment of those amounts shall be made upon issuance or transfer
of these types of licenses, and shall be made by the holders of these
types of licenses at the time specified in this division for payment
of annual renewal fees therefor. All money collected from the fees
provided for in this section shall be deposited in the Youth Alcohol
Problem Prevention Fund.
   25690.  The Youth Alcohol Problem Prevention Fund is hereby
established in the State Treasury. The department and the State Board
of Equalization shall deduct the costs of administering this article
before transmitting the money collected as fees pursuant to Section
25690 and subdivision (b) of Section 32230 of the Revenue and
Taxation Code to the State Treasury to the credit of the Youth
Alcohol Problem Prevention Fund. Notwithstanding any other provision
of law, all moneys in the fund are hereby continuously appropriated,
without regard to fiscal year, to the department and the State
Department of Alcohol and Drug Programs in the following manner:
   (a) The department shall receive 20 percent of the annual amount
in the fund to enhance the enforcement of laws prohibiting furnishing
alcohol to minors. At least 50 percent of the funds received
pursuant to this subdivision shall be distributed to local law
enforcement agencies.
   (b) The State Department of Alcohol and Drug Programs shall
receive 30 percent of the annual amount in the fund to:
   (1) Conduct research on the impact of alcohol marketing on
underage drinking.
   (2) Conduct a statewide media campaign to alert the public to the
risks of underage drinking and address the impact of alcohol
marketing on youth.
   (3) Assess and enhance youth alcohol recovery programs in the
state.
   (c) (1) Fifty percent of the annual amount shall be distributed
among counties to reimburse the costs of publicly funded emergency
and trauma services and youth alcohol treatment, recovery, and
prevention programs.
   (2) Funds shall be distributed pursuant to this subdivision in
accordance with the standard allocation methodology agreed to by the
State Department of Alcohol and Drug Programs and the County Alcohol
and Drug Program Administrators Association of California, and
described in the February 1997 Allocation Report to the Legislature.
   25692.  (a) On or before January 1, 2008, and on every January 1
thereafter, the State Department of Alcohol and Drug Programs shall
report to the Legislature on the research conducted by the State
Department of Alcohol and Drug Programs regarding alcohol and minors.
The report shall include, but is not limited to, the following:
   (1) The impact of alcohol marketing on youth.
   (2) The types and brands of alcoholic beverages with special
appeal to youth and the level of youth consumption of those beverages
by type.
   (3) Adult awareness of alcoholic beverages with special appeal to
youth.
   (4) The labeling and packaging of alcoholic beverages with special
appeal to youth.
   (b) The funds made available to the State Department of Alcohol
and Drug Programs pursuant to subdivision (b) of Section 25690 shall
be used for costs associated with the research and report required by
this section.
  SEC. 2.  Section 32230 of the Revenue and Taxation Code is amended
to read:
   32230.   (a)    All surtaxes, interest, and
penalties imposed and required to be paid under this chapter shall be
made in remittances to the State Board of Equalization and shall be
deposited in the General Fund. 
   (b) (1) For calendar years beginning on and after January 1, 2007,
the State Board of Equalization shall calculate, on a quarterly
basis, the total amount of all surtaxes, interest, and penalties
collected as a result of the reclassification of any alcoholic
beverage from beer, as defined in Section 23006 of the Business and
Professions Code, to a distilled spirit, as defined in Section 23005
of the Business and Professions Code.  
   (2) Notwithstanding any other provision of law, all surtaxes,
interest, and penalties calculated by the State Board of Equalization
pursuant to this subdivision shall be transferred to the Youth
Alcohol Problem Prevention Fund created by Section 25690 of the
Business and Professions Code. 
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to insure the safety, health, and well-being of
California's youth against the negative impacts of alcohol use, it is
necessary that this act take effect immediately.