BILL ANALYSIS Ó AB 2004 Page 1 Date of Hearing: April 2, 2014 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Isadore Hall, Chair AB 2004 (Chesbro) - As Amended: February 20, 2014 SUBJECT : Department of Alcoholic Beverages Control: Annual Report. SUMMARY : Requires the Department of Alcoholic Beverage Control (ABC or department) to include in its annual report to the Legislature, the number of active field agents employed by the department and the number and type of enforcement activities conducted by the department and by local law enforcement agencies in conjunction with the department by license type and by region or county. EXISTING LAW : 1) The enactment of the 21st Amendment to the U.S. Constitution in 1933 repealed the 18th Amendment and ended the era of Prohibition. Accordingly, states were granted the authority to establish alcoholic beverage laws and administrative structures to regulate the sale and distribution of alcoholic beverages. 2) Establishes ABC and grants it exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (Act). This involves licensing individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state and the collection of license fees for this purpose. 3) Provides that on or before March 1 of each year, the director shall prepare and submit to the Legislature an annual report on the department's activities and post the report on the department's Internet Web site. The report shall include, but not be limited to, the following information for the previous fiscal year: (a) The amount of funds allocated and spent by the department for licensing, enforcement, and administration. (b) The number of licenses issued, renewed, denied, suspended, and revoked, by license category. AB 2004 Page 2 (c) The average time for processing license applications, by license category. (d) The number and type of enforcement activities conducted by the department and by local law enforcement agencies in conjunction with the department. (e) The number, type, and amount of penalties, fines, and other disciplinary actions taken by the department. FISCAL EFFECT : Unknown. COMMENTS : Purpose of the bill : Currently, the ABC Director reports to the Legislature annually the number and type of enforcement activities by the department and by local law enforcement in conjunction with the Department. According to the author, "Unfortunately, the annual report does not provide the actual number of ABC enforcement agents in the field or the specific enforcement activities broken down by region and county and by license type." Further the author states, "AB 2004 merely ensures full transparency for the Legislature as to how many active field agents there are, a breakdown of type of license category that are subject to enforcement activity and where those enforcement efforts are occurring. This bill will provide the Legislature a more accurate picture of ABC's staffing and workload issues enabling better Legislative budget decisions." In support : According to California Craft Brewers Association, this bill will assist ABC in its mission to administer the provisions of the Act in a manner that fosters and protects the health, safety, welfare, and economic well-being of the people of the State. A strong ABC is in the best interest of the public and the alcohol beverage industry. Prior legislation : AB 1425 (Committee on Governmental Organization), Chapter 463, Statutes of 2013. Required ABC to post its annual report to the Legislature on its Internet Web site by March 1 of each year instead of submitting it to the Legislature. AB 2004 Page 3 AB 749 (Hall), Chapter 221, Statutes of 2011. Changed the period covered by the Department of ABC annual report to the Legislature from a "calendar" year time period to a "fiscal" year. SB 1480 (Committee on Governmental Organization), Chapter 296, Statutes of 2010. Among other things, deleted the requirement that the Director of ABC include recommendations for legislation in the annual ABC report to the Legislature. AB 2413 (Committee on Governmental Organization) Chapter 579 of Statutes of 2002. Required ABC to include within its annual report to the Legislature, the number and type of enforcement activities conducted by local law enforcement agencies in conjunction with the ABC. REGISTERED SUPPORT / OPPOSITION : Support California Craft Brewers Association Opposition None on file Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531