Amended in Senate June 29, 2016

Amended in Assembly April 25, 2016

Amended in Assembly April 14, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1554

Introduced by Assembly Member Irwin

(Principal coauthor: Senator Huff)

(Coauthors: Assembly Members Campos, Gipson, Gonzalez, Levine, Lopez, and Williams)

January 4, 2016

An act tobegin insert amend Sections 23004 and 23005 of, and toend insert add Sections 23003.1, 23794,begin delete 24200.7, and 25623 toend deletebegin insert and 25623.5 to,end insert the Business and Professions Code, relating to powdered alcohol.


AB 1554, as amended, Irwin. Powdered alcohol.

The Alcoholic Beverage Control Act contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon alcoholic beverage licenses by the Department of Alcoholic Beverage Control. That act imposes additional regulations on the sale of alcoholic beverages and creates penalties for violations of those regulations.

This bill would prohibit the department from issuing a license to manufacture, distribute, or sell powdered alcohol, asbegin delete defined, and would require the department to revoke the license of any licensee who manufactures, distributes, or sells powdered alcohol, as provided.end deletebegin insert defined.end insert This bill would prohibit thebegin insert possession,end insert purchase, sale, offer for sale, distribution, manufacture,begin delete possession,end delete or use of powdered alcohol and would make thebegin insert specifiedend insert violation of these provisions punishable as an infraction.

This bill would impose a state-mandated local program by creating a new crime.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1


Section 23003.1 is added to the Business and
2Professions Code
, to read:



“Powdered alcohol” means an alcohol prepared or
4sold in a powder or crystalline form that is used for human
5consumption in that form or reconstituted as an alcoholic beverage
6when mixed with water or any other liquid. “Powdered alcohol”
7does not include “vaporizedbegin delete alcohol”end deletebegin insert alcohol,end insertbegin insertend insert as defined in
8Section 25621.

9begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 23004 of the end insertbegin insertBusiness and Professions Codeend insert
begin insert is amended to read:end insert



“Alcoholic beverage” includes alcohol, spirits, liquor,
12wine, beer, and every liquid or solid containing alcohol, spirits,
13wine, or beer, and which contains one-half of 1 percent or more
14of alcohol by volume and which is fit for beverage purposes either
15alone or when diluted, mixed, or combined with other substances.
16“Alcoholic beverage” does not include “powdered alcohol,” as
17defined in Section 23003.1.

18begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 23005 of the end insertbegin insertBusiness and Professions Codeend insert
begin insert is amended to read:end insert



“Distilled spirits” means an alcoholic beverage obtained
21by the distillation of fermented agricultural products, and includes
22alcohol for beverage use, spirits of wine, whiskey, rum, brandy,
23and gin, including all dilutions and mixtures thereof. “Distilled
24spirits” does not include “powdered alcohol,” as defined in Section

P3    1

begin deleteSEC. 2.end delete
begin insertSEC. 4.end insert  

Section 23794 is added to the Business and Professions
, to read:



A license shall not be issued to any applicant to
5authorize the manufacture, distribution, or retail sale of powdered

begin delete7

SEC. 3.  

Section 24200.7 is added to the Business and
8Professions Code
, to read:



The department shall revoke or suspend any license
10if the licensee or the agent or employee of the licensee
11manufactures, distributes, or offers for retail sale powdered alcohol.

end delete

begin deleteSEC. 4.end delete
begin insertSEC. 5.end insert  

Section begin delete25623end deletebegin insert25623.5end insert is added to the Business and
14Professions Code
, to read:


begin delete25623.end delete
begin insert25623.5.end insert  

(a) A person shall notbegin insert possess,end insert purchase, sell, offer
17for sale, manufacture, distribute,begin delete possess,end delete or use powdered alcohol.

begin delete

18(b) (1) Any person who sells, offers for sale, manufactures, or
19distributes powdered alcohol is guilty of an infraction that shall
20be punishable by a fine of not more than five hundred dollars

end delete
begin delete

P3   1 22(2)

end delete

23begin insert(b)end insert Any person who purchases, possesses, or uses powdered
24alcohol is guilty of an infraction and subject to a fine of one
25hundred twenty-five dollars ($125).


begin deleteSEC. 5.end delete
begin insertSEC. 6.end insert  

No reimbursement is required by this act pursuant to
28Section 6 of Article XIII B of the California Constitution because
29the only costs that may be incurred by a local agency or school
30district will be incurred because this act creates a new crime or
31infraction, eliminates a crime or infraction, or changes the penalty
32for a crime or infraction, within the meaning of Section 17556 of
33the Government Code, or changes the definition of a crime within
34the meaning of Section 6 of Article XIII B of the California