BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2203| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AB 2203 Page 2 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 **** END ****