BILL ANALYSIS Ó AB 2203 Page 1 Date of Hearing: April 9, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2203 (Chesbro) - As Introduced: February 20, 2014 Policy Committee: Governmental Organization Vote: 19-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill prohibits the obliteration, mutilation, or marking out of a manufacturer's name on metal beer kegs. FISCAL EFFECT Negligible and absorbable enforcement costs to the Department of Alcoholic Beverage Control. COMMENTS 1) Purpose. According to the author, current law prohibits the removal of manufacturer 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 for which removal is prohibited. 2) Keg Theft. The author argues metal theft is a chronic problem, and the beer industry is not immune from being victimized. Beer manufacturers invest significant resources into refillable metal kegs. Unfortunately, some of these kegs have been stolen and resold for scrap metal value. The author asserts existing law makes it 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 includes 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. AB 2203 Page 2 Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081