BILL NUMBER: AB 1019	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 29, 2009
	AMENDED IN ASSEMBLY  APRIL 15, 2009

INTRODUCED BY   Assembly Member Beall
   (Coauthor: Assembly Member Torlakson)
    (   Coauthor:   Senator
  Florez   ) 

                        FEBRUARY 27, 2009

   An act to add Division 10.56 (commencing with Section 11972.10) to
the Health and Safety Code, relating to alcohol abuse programs, and
making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1019, as amended, Beall. Alcohol-Related Services Program.
   Existing law requires the State Department of Alcohol and Drug
Programs to perform various functions and duties with respect to the
development and implementation of state and local substance abuse
treatment programs.
   This bill would, in addition, establish the Alcohol-Related
Services Program and the Alcohol-Related Services Program Fund and
would authorize the State Board of Equalization to assess and collect
specified fees from every person who is engaged in business in this
state and sells alcoholic beverages for resale, as prescribed. The
bill would require the fees to be deposited into the fund and would
continuously appropriate those moneys exclusively for the
alcohol-related services programs established pursuant to this bill.
The bill would authorize the State Department of Alcohol and Drug
Programs to establish, or contract or provide grants for the
establishment of, component services under the program.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Division 10.56 (commencing with Section 11972.10) is
added to the Health and Safety Code, to read:

      DIVISION 10.56.  Alcohol-Related Services Program


   11972.10.  (a) This act shall be known, and may be cited, as the
Alcohol-Related Services Act of 2009.
   (b) The Legislature finds and declares all of the following:
   (1) The following findings rely, in part, on "The Cost of Alcohol
in California," by Rosen, Miller, and Simon in Alcoholism: Clinical
and Experimental Research, Vol. 32 No. 11 (2008).
   (2) Alcohol-related problems cost Californians an estimated $38.4
billion annually, including costs for alcohol-related illness and
injury, criminal justice, lost productivity,  as well as
  and  impacts on the welfare system, trauma and
emergency care, and the foster care system, among other costs.
   (3) Alcohol use drains California's state and county governments
of approximately $8.3 billion annually in increased health care
costs, criminal justice costs, and lost tax bases, while the income
to the state in alcohol licensing, fees, excise taxes, and sales
taxes is less than $1 billion annually.
   (4) The alcohol industry currently does not pay any fees at the
state level to offset or mitigate the enormous costs its products
impose on California.
   (5) One out of every nine Californians suffers from alcohol
addiction.
   (6) Alcohol-related accidents are the leading cause of death among
teenagers and the cause of many permanently disabling injuries.
   (7) Eight out of every 10 felons sent to state prisons are alcohol
abusers.
   (8) Annually, there are over 220,000 admissions to publicly funded
alcohol treatment services. Alcohol treatment services reunify
families, and decrease criminal justice activities and costs.
   (9) Alcohol use during pregnancy causes approximately 5,000
children to be born in California each year with alcohol-related
birth defects.
   (10) Drinking and driving is the major cause of traffic accidents
and fatalities in California each year.
   (11) The use of alcohol is a major cause of hospital emergency
room and trauma care treatment, and greatly contributes to the need
for transportation costs such as emergency medical air transportation
services and ambulance costs.
   (12) The use of alcohol is closely associated with mental illness
and contributes enormously to the cost of treating the mentally ill.
   (13) Effective prevention and treatment services for youth
increase school attendance and academic performance.
   (14) California prevention services reach only 4.3 million people
annually, but the entire population of the state needs access to
prevention services.
   (15) The use of alcohol is a factor in the majority of child and
spousal abuse cases, and is frequently associated with the abuse of
the elderly, mentally ill, and mentally retarded residents of
long-term care facilities.
   (16) There are significant benefits of alcohol treatment and
recovery programs and they are effective. People who complete
treatment find employment and pay taxes, no longer suffer from
alcohol problems, and become productive members of their communities.

   (17) While the staggering cost of alcohol abuse is borne by all
Californians, 67 percent of the alcohol sold in California is
consumed by only 11 percent of the population.
   (18) This division is necessary to mitigate the adverse effects of
alcohol use.
   (19) It is the intent of the Legislature to impose a regulatory
fee pursuant to this division within the guidelines and limitations
approved by the Supreme Court of California in Sinclair Paint Co. v.
State Bd. of Equalization (1997) 15 Cal.4th 866.
   (20) There is a nexus between the regulatory program of this
division and the source of harm, which is the alcohol product, and a
rational basis for the assessment of fees to the market. The
statutory definitions of alcohol in beer, wine, and distilled spirits
categories have been used consistently in police power regulations
of the state, and therefore are a rational basis for mitigation fee
assessment.
   (21) It shall be considered a beneficial, regulatory goal of this
program to deter future harm by reducing consumption through
implementation of a mitigation fee that shall be paid in the stream
of commerce of the alcohol industry.
   (22) It is reasonable to assess mitigation fees at the wholesale
level of the stream of commerce, as most alcohol products are made
outside of California and the ownership and corporate structure is
largely foreign causing practical complications, while retail sales
locations are much more numerous than wholesale operations and
therefore less efficiently assessed.
   11972.13.  As used in this division, the following terms have the
following meanings:
   (a) "Department" means the State Department of Alcohol and Drug
Programs.
   (b) "ARS Program" means the Alcohol-Related Services Program
established pursuant to Section 11972.15.
   (c) "ARSP Fund" means the Alcohol-Related Services Program Fund
established pursuant to Section 11972.20.
   11972.15.  (a) There is hereby established the Alcohol-Related
Services Program, to be administered by the State Department of
Alcohol and Drug Programs.
   (b) (1) The ARS Program is established under the police powers of
the state as a regulatory and service program to protect the health
and safety of California residents who are harmed by the pervasive
influence of alcohol production, distribution, sales, and
consumption.
   (2) The component alcohol-related services described in Section
11972.25, and authorized under the ARS Program, may mitigate for the
past, present, or future harm caused by alcohol products in the
stream of commerce in California.
   (3) The ARS Program may support preexisting or new services.
   (c) By April 1, 2010, the department shall adopt rules,
guidelines, procedures, and regulations necessary or appropriate to
carry out the purposes of this division, including guidelines
regarding the application process for contracts or grants under
component alcohol-related services of the ARS Program. Rules,
guidelines, procedures, and regulations may be adopted on an
emergency basis if necessary to meet the four-month deadline. The
rules, guidelines, and procedures shall be adopted in accordance with
the rulemaking provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code) and shall include submissions by
state agencies, nonprofit organizations, cities, and counties of
evidence of alcohol harm that causes the need and nexus for the
component alcohol-related services of the ARS Program. The published
rules, guidelines, and procedures shall include supplemental findings
to further demonstrate the reasonable relationship between all
component alcohol-related services and the harm from the use of
alcohol.
   11972.20.  (a) (1) Commencing January 1, 2010, a mitigation fee is
hereby imposed on all persons engaged in business in this state, as
described in Section 6203, and making sales of alcoholic beverages,
where the sale is for the purpose of resale in the regular course of
business of the purchaser. The mitigation fee shall be assessed at
the first point of sale within the state.
   (2) The mitigation fee shall be established at the following
rates:
   (A) On all beer, one dollar and seven cents ($1.07) per gallon and
at a proportionate rate for any other quantity.
   (B) On all still wines containing not more than 14 percent of
absolute alcohol by volume, two dollars and fifty-six cents ($2.56)
per wine gallon and at a proportionate rate for any other quantity.
   (C) On all still wines containing more than 14 percent of absolute
alcohol by volume, and on sparkling hard cider, four dollars and
twenty-seven cents ($4.27) per wine gallon and at a proportionate
rate for any other quantity.
   (D) On champagne and sparkling wine, excepting sparkling hard
cider, whether naturally or artificially carbonated, two dollars and
fifty-six cents ($2.56) per wine gallon and at a proportionate rate
for any other quantity.
   (E) On all distilled spirits, eight dollars and fifty-three cents
($8.53) per wine gallon and at a proportionate rate for any other
quantity.
   (3) Annually the State Board of Equalization may authorize an
increase in these fees by an amount equal to the increase in the
California Consumer Price Index, as recorded by the Department of
Industrial Relations, for the most recent year available.
   (4) The amount of the fee shall be sufficient to defray the costs
of the State Board of Equalization and the department in implementing
this division, but not in excess of the amount needed to fully
implement this division.
   (b) (1) There is hereby established in the State Treasury the
Alcohol-Related Services Program Fund.
   (2) Except for reimbursement for the State Board of Equalization
for expenses incurred in the administration and collection of the fee
imposed by this division, all funds collected pursuant to
subdivision (a), less refunds, shall be deposited in the ARSP Fund.
   (3) Funds collected pursuant to this division and deposited in the
ARSP Fund shall be continuously appropriated to the department, to
be used exclusively by the department for the purposes of funding the
ARS Program pursuant to this division.
   (4) Notwithstanding Section 16305.7 of the Government Code, in
addition to any funds collected by, or on behalf of, the State Board
of Equalization for deposit in the ARSP Fund, all interest earned by
the ARSP Fund shall be deposited in the ARSP Fund.
   (c) The State Board of Equalization shall collect the mitigation
fee pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code).
   (d) Any fee imposed pursuant to this division shall be consistent
with all applicable legal requirements for imposing fees, including
the requirements set forth in Sinclair Paint Co. v. State Bd. of
Equalization (1997) 15 Cal.4th 866.
   11972.25.  (a) Beginning April 1, 2010, the department shall
establish, enter into contracts for the establishment or continuation
of, or provide grants for the establishment or continuation of,
component services under the ARS Program. After the initial April 1,
2010, release date, the department shall release grants or contracts
on July 1, 2011, and every two years thereafter. No service component
shall be funded in excess of the cost of harm caused by alcohol,
which, in turn, caused the need for these services.
   (b) The department shall include five alcohol-related component
services in the ARS Program described in subdivision (d). The
department shall equally distribute available funding from the ARSP
Fund to the five alcohol-related component services in subdivision
(d).
   (c) The department shall use the criteria of need, effectiveness,
and best practices as guidance in deciding on guidelines for the
service components. The department may, in its biennial update of its
guidelines, consider other varieties of services but shall show the
need, effectiveness, and best practices that those services bring to
the component service area.
   (d) The ARS Program shall consist of all of the following
component services:
   (1) Treatment and recovery services to mitigate the harm of
alcohol use. The types of services to be considered under this
paragraph shall include all of the following:
   (A) Capital expenditures for housing, treatment facilities,
recovery facilities, domestic violence shelters, and homeless and
low-income facilities for persons recovering from alcohol abuse.
   (B) Adult and adolescent treatment programs, including a full
continuum of active treatment, including cooccurring disorders
treatment programs and medication-assisted treatments and the
medications involved, inpatient or outpatient detoxification,
inpatient services, residential care, intensive outpatient programs,
office-based outpatient programs, case management services, and
recovery support services, for alcohol abuse treatment provided by a
specialty alcohol abuse provider or in a primary care or nonalcohol
abuse specialty setting, including, but not limited to, a public
health clinic, a federally qualified health center, a school health
clinic, or in a criminal justice setting or program by a licensed
alcohol abuse-trained medical doctor or registered nurse or
state-certified alcohol abuse professional.
   (C) Workforce education to support updated 2009-11 alcohol abuse
licensure and certification requirements, as well as alcohol abuse
continuing education requirements and alcohol abuse-related
information technology training.
   (D) Screening, brief intervention, and treatment for adults and
adolescents between 12 years of age and 18 years of age in public and
private hospital emergency rooms, schools, jails, courts and
prisons, public inpatient or residential treatment settings or
intensive outpatient or large office-based settings, and large public
urban and rural clinics.
   (E) Infrastructure funds, including funding for capital requests,
information technology and electronic health records, and associated
equipment and training, including information technology training,
data analytic and reporting training, management training, assessment
training, evidence-based care training, reimbursement training, and
training in quality improvement techniques and programs, including
training in meeting performance management standards.
   (F) Special targeted alcohol abuse funding for the following
groups: veterans, including those from the National Guard and
reserves who are not included in Veterans Administration funding,
pregnant and parenting women, adolescents, alcohol-addicted patients
diagnosed with HIV, hepatitis C, or tuberculosis, or any combination
of those diagnoses, victims of crime or domestic violence who have a
post-traumatic stress disorder or severely mentally impaired
diagnosis, and nonalcohol abuse specialty provider training in
alcohol abuse identification, screening, brief intervention and
treatment, assessment and referrals outside of screening, brief
intervention and treatment, including reentry programs for offenders.

   (G) Expansion of alcohol abuse treatment and expertise in
California's rural areas through federally qualified health centers,
community health centers, rural hospital emergency rooms and jails,
including expanding the use of telemedicine consultations to bring
alcohol abuse expertise to rural providers and their patients.
   (H) Planning and data analysis funding, including intervention
evaluation funding and dissemination of results. Planning and data
analysis funding shall not include information technology support.
   (I) Integrated provision of services by certified providers in
nontraditional alcohol abuse settings, including mental health
settings, inpatient and outpatient specialty medical settings,
including obstetrics and gynecology, pediatrics and communicable
disease treatment settings, and large-volume primary care settings.
   (2) Prevention, education, and research programs to prevent the
future use or future harm of alcohol products through preventative
screening, perinatal screening and care, public education, targeted
population education, and research on past harm to better target
prevention and treatment. The types of programs to be considered
under this paragraph include all of the following:
   (A) Prevention, screening, and care regarding the health needs of
infants, children, and women due to perinatal alcohol use.
   (B) A new, coordinated statewide program that provides training
assistance, public policy assistance, and public awareness campaigns
to prevent the use and abuse of alcoholic beverages. The public
awareness campaigns shall focus on informing the public, specifically
children and young adults, of the potential health risks of alcohol
at all levels of consumption. Programs shall include Spanish language
and other threshold languages depending on the population of the
county involved in the program.
   (C) Programs to prevent the use of alcoholic beverages among high
school age youth.
   (D) Research on the epidemiology of alcohol-related illness and
injury.
   (E) Research on the harm from alcohol use in California, including
the costs and benefits of alcohol use, production, distribution, and
retail sales, as background for better planning for treatment and
prevention.
   (3) Emergency medical and trauma care treatment services at the
state, city, county, or city and county level that are directly
related to alcohol use, including transportation for those visits,
emergency, medical, and trauma care services, up to the time the
patient is stabilized, provided by physicians in general acute care
hospitals that provide basic or comprehensive emergency services. The
establishment of monitoring and reporting systems for best practices
in billing and service provision shall be considered.
   (4) Hospitalization and rehabilitation services at the state,
city, county, or city and county level for illnesses caused or
contributed to by, or related to, alcohol use. The variety of
services to be considered under this paragraph shall include:
   (A) Reimbursement to hospitals and clinics for costs not already
covered by private insurance or government programs for illness
caused or contributed to by, or related to, alcohol use.
   (B) Vocational rehabilitation and recovery support services.
   (C) Pharmaceuticals for treatment and rehabilitation of alcohol
addiction, including services to enhance Medicare and Medi-Cal
services and formularies, with an emphasis on generic and safe
substitutes for patent-protected drugs.
   (5) Criminal justice and enforcement programs, at the state, city,
county, or city and county level. The variety of programs to be
considered under this paragraph shall include all of the following:
   (A) Programs to increase and improve the enforcement of laws
prohibiting driving under the influence of an alcoholic beverage and
related criminal justice and penal system costs and services.
   (B) Programs to increase and improve the enforcement of alcohol
abuse-related criminal justice and penal system costs and services.
   (C) Law enforcement programs related to prevention of alcohol use
and abuse and criminal justice.