BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 1554

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          Date of Hearing:   April 20, 2016


                               Lorena Gonzalez, Chair

          1554 (Irwin) - As Introduced January 4, 2016

          |Policy       |Governmental Organization      |Vote:|18 - 0       |
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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   


          This bill prohibits the purchase, sale, offer for sale,  
          distribution, manufacture, possession, or use of powdered  
          alcohol. It prohibits the Department of Alcoholic Beverage  
          Control (ABC) from issuing a license to manufacture, distribute,  
          or sell powdered alcohol, as defined, and would require ABC to  
          revoke the license of any licensee who manufactures,  
          distributes, or sells powdered alcohol. 


                                                                    AB 1554

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          FISCAL EFFECT:

          Minor absorbable workload to ABC to monitor and enforce the  
          provisions of this bill. 


          1)Purpose. Proponents of AB 1554 argue that powdered alcohol, a  
            powder product that becomes an alcoholic beverage when mixed  
            with water or any other liquid, is a dangerous product with  
            potential great appeal to underage drinkers. It is cheap,  
            potent, and easy to hide, and supporters point out that youth  
            are especially vulnerable because they can sneak powdered  
            alcohol products into events. Moreover, powdered alcohol  
            products manufactured in other countries have been marketed  
            squarely at teenagers. 

          2)Federal and state regulation of powdered alcohol. While  
            powdered alcohol is technically legal, it is not currently  
            being sold anywhere in the United States. In 2015, the US  
            Alcohol and Tobacco Tax and Trade Bureau (TBB) approved labels  
            for a product called Palcohol, and the Palcohol website states  
            that "we will be working on getting production facility up and  
            running. It will take a while but hopefully it will be  
            available soon."  Twenty-seven states have already banned  
            powdered alcohol, and three states, Colorado, Delaware, and  
            New Mexico, have added powdered alcohol in their statutory  
            definitions of alcohol so that the product can be regulated  
            under existing alcohol regulations.

          3)Vaporized alcohol. Existing state law bans the sale or use of  
            any vaporized form of alcohol produced by an alcohol  
            vaporizing device. Vaporized alcohol is alcohol mixed with  


                                                                    AB 1554

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            pure oxygen or another gas to produce a vaporized product that  
            can be inhaled. To date, no notable enforcement cost can be  
            attributed to the ban of this type of alcohol. 


          Analysis Prepared by:Luke Reidenbach / APPR. / (916)