BILL ANALYSIS Ó
AB 2203
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Date of Hearing: April 2, 2014
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 2203 (Chesbro) - As Introduced: February 20, 2014
SUBJECT : Alcoholic beverages: beer labeling.
SUMMARY : Would prohibit the obliteration, mutilation, or
marking out of a manufacturer's name on metal kegs, as
specified.
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in 1933 repealed the 18th Amendment and ended the era of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 the Department of Alcoholic Beverage Control
(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 for specified labeling requirements for containers
of alcoholic beverages sold within this state, and prohibits the
obliteration, mutilation, or marking out of a manufacturer's
name on returnable beer containers or cartons made of wood or
fiber board, as specified. A violation of the Act is a
misdemeanor.
FISCAL EFFECT : Unknown.
COMMENTS :
Purpose of the bill : According to the author, current law
prohibits the removal of manufacturers names, brand names, print
or markings placed on containers such as returnable beer
containers or cartons made of wood or fiber board. AB 2203
simply adds metal kegs to the list of containers.
The author states, "metal theft continues in our communities as
AB 2203
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a chronic problem. The beer industry is not immune from being
victimized. Beer manufacturers invest significant resources
into refillable metal kegs. Unfortunately, these kegs are often
stolen and resold for scrap metal value."
The author points out, under existing law, it is illegal for a
junk dealer or recycler to purchase or accept metal kegs marked
with indicia of ownership from any person or entity other than
the indicated owner. "Indicia of ownership" means words,
symbols, or registered trademarks printed, stamped, etched,
attached, or otherwise displayed on the exterior surface of the
beer keg that reasonably identifies the owner.
The author states, that "unfortunately, metal thieves have been
known to use mechanical grinders or other tools to obliterate
indicia of ownership on metal kegs with intent to obscure the
legitimate trail of ownership. AB 2203 will ensure that this
practice is not tolerated."
Background :
What is a beer keg ? A keg is a small barrel. It is commonly
used to store, transport, and serve beer. Beer kegs are made of
stainless steel, or less commonly, of aluminum. A keg has a
single opening on one end. A tube called a "spear" extends from
the opening to the other end. There is a self-closing valve that
is opened by the coupling fitting which is attached when the keg
is tapped. There is also an opening at the top of the spear that
allows gas (usually carbon dioxide) to drive the beer out of the
keg. The coupling fitting has one or two valves that control the
flow of beer out of and gas into the keg.
Beer keg registration : Beer keg registration is a legal
requirement in some U.S. states and localities that
identification tags or labels be affixed to beer kegs upon
retail sale. They often consist of requirements that tags and
records retained by the retailer list the name and address of
the purchaser, the date and location where the beer will be
served, and other information. These laws vary widely in their
specifics and enforcement. There appears to have been little
academic study of the efficacy of beer keg registration laws.
REGISTERED SUPPORT / OPPOSITION :
Support
AB 2203
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California Craft Brewers Association
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531