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          in 1933 repealed the 18th Amendment and ended the era of  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