BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                       CONSENT


          Bill No:  AB 2203
          Author:   Chesbro (D)
          Amended:  As introduced
          Vote:     21


           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  10-0, 6/24/14
          AYES:  Correa, Berryhill, Cannella, De León, Galgiani,  
            Hernandez, Lieu, Padilla, Torres, Vidak
          NO VOTE RECORDED:  Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  75-0, 4/24/14 (Consent) - See last page for  
            vote


           SUBJECT  :    Alcoholic beverages:  beer labeling

           SOURCE  :     Author


           DIGEST :    This bill adds metal kegs to an existing provision of  
          the Alcoholic Beverage Control Act (ABC Act) that prohibits the  
          obliteration, mutilation, or marking out of a manufacturer's  
          name on returnable beer containers or cartons made of wood or  
          fiber board.

           ANALYSIS  :    Existing law 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 without the  
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          written consent of the manufacturer whose name, brand, or  
          printed markings is to be obliterated, mutilated or marked out.

          This bill adds metal kegs to an existing provision of the ABC  
          Act that prohibits the obliteration, mutilation, or marking out  
          of a manufacturer's name on returnable beer containers or  
          cartons made of wood or fiber board.

           Background
           
          Most kegs are made from stainless steel which has a high recycle  
          value.  Because the deposit is less than the scrap value of the  
          keg, some thieves may even buy the beer, pay the deposit  
          (usually, only $10) for the keg, drink or empty the keg, and  
          then haul the empty keg to a scrap yard and sell it for a  
          profit.  (Current scrap metal value of the keg is approximately  
          $55.)  It costs brewers as much as $150 to replace a keg.  Beer  
          keg theft is estimated to cost brewers and importers well over  
          $50 million annually.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  7/31/14)

          California Craft Brewers Association

           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill simply adds metal kegs to the list of containers for which  
          removal is prohibited - it is intended to give law enforcement  
          another legal tool to use against thieves that are stealing  
          kegs, grinding out the name or any identifying information and  
          then recycling the kegs for cash.

           ASSEMBLY FLOOR  :  75-0, 4/24/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Grove, Hagman, Hall, Roger Hernández, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan,  
            Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,  







                                                                    AB 2203
                                                                     Page  
          3

            Ridley-Thomas, Rodriguez, Salas, 
          Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,  
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Gray, Harkey, Mansoor, Nazarian, Vacancy

          MW:e  8/5/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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