BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1554|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 1554
Author: Irwin (D), et al.
Amended: 6/29/16 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/14/16
AYES: Hall, Bates, Block, Gaines, Galgiani, Glazer, Hernandez,
Hill, Hueso, Lara, McGuire, Vidak
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 76-0, 4/28/16 (Consent) - See last page for
vote
SUBJECT: Powdered alcohol
SOURCE: Alcohol Justice
Health Officer's Association of California
McGeorge Legislative & Public Policy Clinic
DIGEST: This bill prohibits the Department of Alcoholic
Beverage Control (ABC) from issuing a license to manufacture,
distribute, or sell powdered alcohol, as defined.
ANALYSIS: Existing federal law grants states the authority to
establish alcoholic beverage laws and administrative structures
to regulate the sale and distribution of alcoholic beverages.
Existing state law:
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1)Establishes the Alcoholic Beverage Control Act (Act) which
contains various provisions regulating the application for,
the issuance of, the suspension of, and the conditions imposed
upon, alcoholic beverage licenses by ABC.
2)Imposes regulations on the sale of alcoholic beverages and
creates penalties for violations of those regulations.
3)Grants ABC exclusive authority to administer the provisions of
the Act.
4)Establishes three types of alcoholic beverages for tax
purposes, namely, distilled spirits, beer and wine.
This bill:
1)Prohibits ABC from issuing a license to manufacture,
distribute, or sell powdered alcohol.
2)Defines "powdered alcohol" to mean an alcohol prepared or sold
in a powder or crystalline form that is used for human
consumption in that form or reconstituted as an alcoholic
beverage when mixed with water or any other liquid.
3)Prohibits the possession, purchase, sell, offer for sale,
distribution, manufacture, or use of powdered alcohol.
4)Specifies that any person who possesses, purchases, or uses
powdered alcohol is guilty of an infraction and subject to a
fine of $125.
Background
Purpose of the bill. According to the author, "powdered alcohol
provides everyone, but especially children, a new way to drink
and experiment with alcohol. The odorless, easily concealable
white powder can turn any water bottle into vodka, or increase
liquor's alcohol content to higher and dangerous levels. With
the risks and harms traditional liquid alcohol already present
to children, allowing another path to those distressing outcomes
is unacceptable."
Powdered alcohol. As the name suggests, powdered alcohol is
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powder that when mixed with water or any other liquid becomes an
alcoholic beverage. Small amounts of liquid alcohol are
enclosed in cyclodextrins, which are literally small rings of
sugar. Once water or any other liquid is added the sugar
dissolves and the alcohol is freed into the drink. Powdered
alcohol gained media attention in the United States when in
April 2014 the U.S. Alcohol and Tobacco Tax and Trade Bureau
(TTB) approved labels for a product called Palcohol.
Proponents of powdered alcohol have touted its light weight and
its ease to transport as some of the benefits of powdered
alcohol compared to liquid alcohol.
Critics of powdered alcohol argue that powdered alcohol will be
much easier to over consume, conceal and be acquired by minors.
Critics point to the ability to add powdered alcohol to liquid
alcohol to produce a greater concentration than intended. In
addition, critics point to the ease in which people, including
youths, could bring alcohol to places where it is banned; such
as sporting events, movie theaters, parks, and schools.
Powdered Alcohol Authorization. Though the TTB approved the
Palcohol labels in April of 2014, within two weeks the TTB
issued a statement stating that the approval had been issued in
error. However in March 2015, the TTB again approved four
powdered alcohol products with the brand name "Palcohol" for
sale in the U.S.
Shortly after TTB approval, the U. S. Food and Drug
Administration (FDA) responded to inaccurate reports that
implied that the FDA had approved powdered alcohol as being
safe. Rather, the FDA clarified that its role was to evaluate
the nonalcoholic ingredients. Based on that evaluation, the FDA
stated that "the use of ingredients in the proposed products was
in compliance with FDA's regulations. The agency notes that the
ingredients used in the products are typical of ingredients
found in many processed foods." The FDA concluded that they had
no legal basis to block their entry into the U.S. market.
However, individual states, not the TTB, are responsible for
regulating the sale of alcohol and tobacco products at the
retail level, including sales to minors. As of November 2015,
27 states have banned powdered alcohol outright. Two states,
Maryland and Minnesota have a one year temporary statutory ban.
Three states, Colorado, Delaware, and New Mexico have added
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powdered alcohol in their statutory definitions of alcohol so
that the product can be regulated under existing alcohol
regulations.
As of today, powdered alcohol is not being sold anywhere in the
United States, though the Palcohol website does state that the
product will be available, "as soon as we can."
Prior/Related Legislation
SB 819 (Huff, 2016) prohibits ABC from issuing a license to
manufacture, distribute, or sell powdered alcohol, as defined,
and requires ABC to revoke the license of any licensee who
manufactures, distributes, or sells powdered alcohol, as
provided. (Pending in Assembly Appropriations Committee)
SB 39 (Padilla, Chapter 140, Statutes of 2011) prohibited the
importation, production, manufacture, distribution, or sale of
beer to which caffeine has been directly added as a separate
ingredient at retail locations in California, as defined.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified 8/1/16)
Alcohol Justice (co-source)
Health Officer's Association of California (co-source)
McGeorge Legislative & Public Policy Clinic (co-source)
Alameda County Board of Supervisors
Alcohol Policy Panel of San Diego County
Association of California Healthcare Districts
Association for Los Angeles Deputy Sheriffs
California Alcohol Policy Alliance
California Association of Code Enforcement Officers
California Beer and Beverage Distributors
California College and University Police Chiefs Association
California Consortium of Addiction Programs and Professionals
California Council on Alcohol Problems
California District Attorneys Association
California Friday Night Live Partnership
California Narcotic Officers Association
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California Public Health Association - North
California School Employees Association
California State PTA
California State Sheriff's Association
Children's Hospital Los Angeles
City of El Cajon
City of Los Angeles
Consumer Federation of California
Contra Costa County
County Behavioral Health Directors Association
County of El Dorado Board of Supervisors
County Health Executives Association of California
Eden Youth and Family Center
Fighting Back Steering Committee
Institute for Public Strategies
Los Angeles County Professional Peace Officers Association
Los Angeles Deputy Sheriffs
Los Angeles Drug and Alcohol Policy Alliance
Los Angeles Police Protective League
Lutheran Office of Public Policy - California
Marin County Board of Supervisors
National Association of Social Workers, California Chapter
National Council on Alcoholism and Drug Dependence - San
Fernando Valley
Pacific Clinics
Partnership for a Positive Pomona
Placer County Board of Supervisors
Pueblo y Salud, Inc.
Riverside Sheriffs Association
Saving Lives Coalition
SHIELDS for Families
Social Model Recovery Systems, Inc.
Sonoma County Board of Supervisors
Techniques for Effective Alcohol Management
Ventura County Board of Supervisors
Ventura County Sheriff's Office
The Wall - Las Memoria Project
Women Against Gun Violence
Youth for Partnership for a Positive Pomona
Youth Leadership Institute
OPPOSITION: (Verified 8/1/16)
Palcohol
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ARGUMENTS IN SUPPORT: According to the California Alcohol
Policy Alliance, "powdered alcohol is perhaps the most
dangerous, youth attractive alcohol product allowed in the
market. We cannot ignore the dangers the product poses to
underage drinkers. If this product hits the California market,
serious injuries, alcohol poisonings, and even deaths will
result."
The Health Officer's Association of California states that,
"mixing powdered alcohol with smaller amounts of water than
directed will result in extremely potent beverages. In its
powdered and compact form, this product will be easy to conceal
and bring to areas where alcohol is prohibited, such as schools;
or where alcohol is sold and regulated, such as cultural events.
When alcohol is for sale at an event or location, retailers are
required to monitor customers' intake to prevent over
intoxication. This becomes much more difficult when customers
can bring their own alcohol in powdered form."
ARGUMENTS IN OPPOSITION: Palcohol claims that ,"Palcohol is a
revolutionary new product that offers so many innovative
solutions in medicine, recreation, travel, energy, aviation,
pharmaceuticals, the military, food production, manufacturing
and many more. In addition, because Palcohol is so much lighter
to ship than liquid alcohol, it will reduce the carbon
footprint."
In addition, Palcohol argues that, "a ban will be a double
whammy financially. The state will have to spend money to
enforce the ban and on top of that, the government won't realize
the significant tax revenue from the legal sales of powdered
alcohol so it's fiscally irresponsible to ban powdered alcohol."
ASSEMBLY FLOOR: 76-0, 4/28/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper,
Dababneh, Dahle, Dodd, Eggman, Frazier, Beth Gaines,
Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,
Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,
Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty,
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Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell,
Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Chávez, Daly, Mathis, Olsen
Prepared by:Felipe Lopez / G.O. / (916) 651-1530
8/3/16 18:40:23
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