BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2121|
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                                   THIRD READING 


          Bill No:  AB 2121
          Author:   Gonzalez (D), et al.
          Amended:  8/15/16 in Senate
          Vote:     21 

           SENATE GOVERNMENTAL ORG. COMMITTEE:  13-0, 6/28/16
           AYES:  Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer,  
            Hernandez, Hill, Hueso, Lara, McGuire, Vidak

           SENATE APPROPRIATIONS COMMITTEE:  5-0, 8/11/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NO VOTE RECORDED:  Bates, Nielsen

           ASSEMBLY FLOOR:  64-11, 6/2/16 - See last page for vote

           SUBJECT:   Alcoholic beverage control:  Responsible Beverage  
                     Service Training Program Act of 2016


          SOURCE:    California Medical Association

          DIGEST:    This bill establishes the Responsible Beverage  
          Service (RBS) Training Program Act of 2016, beginning July 1,  
          2020, that requires an alcohol server, as defined, to  
          successfully complete an RBS training course from an accredited  
          training provider within three months of employment and every  
          three years thereafter.

          ANALYSIS:
          
          Existing law:
          
           1) Establishes the Department of Alcoholic Beverage Control  








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             (ABC) and grants it exclusive authority to administer the  
             provisions of the ABC Act in accordance with laws enacted by  
             the Legislature.  This involves licensing individuals and  
             businesses associated with the manufacture, importation and  
             sale of alcoholic beverages in this state and the collection  
             of license fees for this purpose. 

           2) Stipulates that no person who sells, furnishes, gives, or  
             causes to be sold, furnished, or given away, any alcoholic  
             beverage shall be civilly liable to any injured person or the  
             estate of such person for injuries inflicted on that person  
             as a result of intoxication by the consumer of such alcoholic  
             beverage.

           3) Provides that every person who sells, furnishes, gives, or  
             causes to be sold, furnished, or given away, any alcoholic  
             beverage to any habitual or common drunkard or to any  
             obviously intoxicated person is guilty of a misdemeanor.

           4) States a cause of action may be brought by or on behalf of  
             any person who has suffered injury or death against any  
             person licensed, or required to be licensed, as specified, or  
             any person authorized by the federal government to sell  
             alcoholic beverages on a military base or other federal  
             enclave, who sells, furnishes, gives or causes to be sold,  
             furnished or given away any alcoholic beverage, and any other  
             person who sells, or causes to be sold, any alcoholic  
             beverage, to any obviously intoxicated minor where the  
             furnishing, sale or giving of that beverage to the minor is  
             the proximate cause of the personal injury or death sustained  
             by that person.

           5) Defines an "on-sale" license as authorizing the sale of all  
             types of alcoholic beverages: namely, beer, wine and  
             distilled spirits, for consumption on the premises (such as  
             at a restaurant or bar).  An "off-sale" license authorizes  
             the sale of all types of alcoholic beverages for consumption  
             off the premises in original, sealed containers. 

           6) Permits the Department of ABC to issue licenses and  
             authorizations for the retail sale of beer, wine and  
             distilled spirits on a temporary basis for special events.   
             The most common are as follows: 








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              a)    Special Daily Beer and/or Wine License - Authorizes  
                the sale of beer and/or wine for consumption on the  
                premises where sold.  (No off-sale privileges)

              b)    Daily On-Sale General License - Authorizes the sale of  
                beer, wine and distilled spirits for consumption on the  
                premises where sold.  (No off-sale privileges)

              c)    Catering Authorization - Authorizes certain types of  
                licensees (and catering businesses that qualify) to sell  
                beer, wine and distilled spirits for consumption at  
                conventions, sporting events, trade exhibits, picnics,  
                social gatherings, or similar events.

              d)    Event Authorization - Authorizes certain types of  
                licensees to sell beer, wine and spirits for consumption  
                on property adjacent to the licensed premises and owned or  
                under the control of the licensee. 

              e)    Wine Sales Event Permit - Authorizes wineries to sell  
                bottled wine produced by the winegrower for consumption  
                off the premises where sold and only at fairs, festivals  
                or cultural events sponsored by designated nonprofit  
                organizations.   

          This bill:

           1) Establishes the RBS Training Program and beginning July 1,  
             2020, requires alcohol servers, as defined, to complete an  
             RBS training course from an accredited training provider  
             within three months of employment and every three years  
             thereafter. 

           2) Defines "alcohol server" to mean a person who sells or  
             serves alcoholic beverages directly to consumers, or a person  
             who manages or supervises a person who sells or serves  
             alcoholic beverages directly to consumers, including the  
             onsite establishment owner of a licensed facility, for  
             consumption on the premises of a licensed facility that  
             includes, but is not limited to, one-day events, fairs,  
             festivals, sporting events, and other special events. 

           3) Stipulates that the licensee must ensure that those persons  
             required to successfully complete an RBS training course do  







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             so and that a current certificate or card provided by any  
             accredited training provider shall be sufficient  
             documentation of successful completion and be accepted  
             statewide.

           4) Defines "accredited training provider" to mean either of the  
             following: (a) a training provider accredited by the American  
             National Standards Institute (ANSI) that meets ASTM  
             International E2659-15 Standard Practice for Certificate  
             Programs or (b) a training provider accredited by an  
             accreditation agency other than ANSI, provided the  
             accreditation agency is authorized by the department of ABC  
             to accredit training providers offering RBS training courses.

           5) Provides that a nonprofit organization that has obtained a  
             temporary daily on-sale license or temporary daily off-sale  
             license from the Department of ABC must designate a person or  
             persons to receive RBS training before the event and that  
             designated person or those designated persons must remain on  
             site for the duration of the event.

           6) Requires the Department of ABC, on or before January 1,  
             2020, to establish a list, published on its Internet Web  
             site, of RBS training courses offered by accredited training  
             providers that may be used to fulfill the requirements of  
             this program.

           7) Provides that an RBS training course shall consist of at  
             least four hours of instruction and include certain  
             information (e.g., social impact of alcohol; impact of  
             alcohol on the body; state laws and regulations relating to  
             alcoholic beverage control and driving under the influence;  
             and, intervention techniques).  Also, permits the Department  
             of ABC to establish additional training standards and  
             curricula to be included in an RBS training course.  

           8) Allows RBS training courses to be offered through a  
             trainer-led class and assessment or self-training and  
             assessment and specifies that participants must score 70% to  
             successfully complete the course.  Also, provides that the  
             certificate or card shall be valid for three years from the  
             date of issuance, regardless of whether the alcohol server  
             changes employers during that period.








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           9) Provides that at least one RBS training course shall cost a  
             participant no more than $15, inclusive of the certificate or  
             card provided upon successful completion of the training  
             course.  At least one RBS training course must be offered in  
             Spanish.  If no RBS training courses meet these requirements  
             the RBS course requirements shall not apply. 

           10)Permits the Department of ABC to authorize an accreditation  
             agency, in addition to ANSI, to accredit training providers  
             to offer RBS training courses and to collect fees to cover  
             reasonable costs associated with the review and approval of  
             that accreditation agency.

           11)Requires the Department of ABC, beginning January 1, 2019,  
             to include information on the RBS training course  
             requirement, including information on documentation  
             requirements, on license applications and license renewal  
             notices.  Also, requires all licensees, beginning July 1,  
             2020, to maintain and provide upon request all records  
             necessary to establish compliance with this bill. 

           12)Stipulates that, beginning July 1, 2020, an authorized  
             licensee, the agent or employee of that licensee, or an  
             alcohol server who knowingly and intentionally violates any  
             provision of this bill, shall only be subject to certain ABC  
             Act civil and administrative penalties.

          Background

          Dram Shop Law.  A dram shop law is a type of statute which holds  
          any business establishment strictly liable for selling alcoholic  
          beverages to a person who is obviously intoxicated.  The purpose  
          of dram shop laws is to increase the responsibility of those who  
          make profits by tendering alcoholic beverages to guests.  The  
          word "dram" refers to a British unit of measurement for serving  
          alcohol.  Dram shop laws usually deal with prohibiting alcohol  
          sales to intoxicated persons, but sometimes they may also cover  
          the sale of alcohol to minors, as well as issues with licenses  
          and identification.  Most states have some form of these types  
          of laws, but they vary widely between jurisdictions.

          California's Dram Shop Law specifies that a vendor who provides  
          alcohol to a person 21 years of age or older cannot be held  
          liable for damages if the person then injures someone else, even  







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          if the person was obviously intoxicated at the time.  The law  
          states that the consumption of alcohol, not the furnishing of  
          the beverages, is the proximate cause of injuries that an  
          intoxicated person inflicts on another individual, a position  
          that largely eliminates dram shop liability.  Thus, the sale of  
          alcohol by bars, liquor stores and restaurants in California is  
          not considered to be the cause of an automobile accident.

          RBS Training Programs.  RBS training is not mandatory in  
          California although some cities and counties do require RBS  
          training in order to sell or serve alcoholic beverages at  
          licensed establishments within their jurisdictions.

          Currently, the Department of ABC oversees the Licensee Education  
          on Alcohol and Drugs Program (LEAD) - a free, voluntary  
          prevention and education program for retail licensees, their  
          employees and applicants.  The mission of the LEAD program is to  
          provide high quality, effective and educationally sound training  
          on alcohol responsibility and the law to California retail  
          licensees and their employees.  The Program was initiated in  
          1991 with a grant from the California Office of Traffic Safety.   
          The training classes are offered at a variety of locations  
          throughout the state and include instruction on checking various  
          forms of identification, detecting and preventing illegal  
          activity, reducing liability and much more.  Each training class  
          lasts four hours.  At the conclusion of the class, there is an  
          exam on the material that was covered and each person that  
          fulfills all of the training requirements receives a  
          certificate, via email, certifying that they successfully  
          completed a LEAD training course. 

          Purpose of AB 2121.  This bill will establish an RBS Training  
          Program that will require alcohol servers, beginning July 1,  
          2020, to obtain certification that they have successfully  
          completed an RBS training course from an accredited training  
          provider within three months of employment and every three years  
          thereafter.  The Department of ABC will be required to develop a  
          list, published on its Web site, of accredited RBS training  
          courses.  Also, both new and renewal applicants for on-sale  
          licenses will be required to provide ABC with documentation that  
          its employees have successfully completed an RBS accredited  
          training course.  Additionally, this bill requires nonprofit  
          organizations that have obtained temporary daily off-sale or  
          on-sale licenses to designate at least one person to receive RBS  







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          training prior to the event and that person must stay on site  
          for the duration of the event.  Furthermore, this bill provides  
          that a licensee, the agent or employee of that licensee, or an  
          alcohol server who knowingly and intentionally violates any  
          provision of this bill shall only be subject to civil and  
          administrative penalties.  

          According to the author's office, "The National Highway Traffic  
          Safety Administration claims that more than 10,000 people die on  
          our streets every year - the equivalent of one fatality every 51  
          minutes due to drunk driving.  While we can't entirely stop  
          every individual from making bad decisions that put innocent  
          people at risk, we do have a responsibility to intervene when we  
          can.  Unlike 18 other states and the District of Columbia,  
          California does not require responsible beverage server training  
          for those bartenders and restaurant servers who are serving  
          alcohol to customers and are in a unique position to assess and  
          intervene if customers pose a potential threat.  While law  
          enforcement does its best with checkpoints and other  
          enforcement, these approaches only help after someone has  
          already made the choice to get behind the wheel when they  
          shouldn't. That isn't good enough.  This bill seeks to help  
          individuals who serve alcohol meet their statutory requirement  
          not to serve obviously intoxicated patrons and minors by  
          requiring participation in an RBS training course from an  
          accredited training provider within three months of employment  
          and every three years thereafter.  The ancillary benefit is a  
          reduction in drunk driving."

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


          According to Senate Appropriations Committee, ongoing costs of  
          approximately $250,000 per year for initial development,  
          evaluation, testing, and implementation of the RBS Training  
          Program and two analyst positions for establishing the  
          rulemaking process, establishing the credentialing process,  
          establishing the auditing program, preparation of outreach  
          information and web design for information.  Also, unknown costs  
          for development of information technology, administrative, and  
          educational structures to support the program.  Costs are  
          expected to decrease over time.  Additionally, unknown costs to  
          approve accreditation agencies other than the ANSI.  There is a  







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          potential source of revenue for a fee for the review and  
          approval of accreditation agencies; however, it is currently  
          unknown whether any such accreditation agencies other than ANSI  
          exist.  All of the above referenced costs would be to the ABC  
          Fund.

          SUPPORT: (Verified   8/12/16) 

          California Medical Association (source)
          Alcohol Justice
          California Alcohol Policy Alliance
          California Craft Brewers Association
          California Police Chiefs Association
          California Society of Addiction Medicine
          County Health Executives Association of California
          Los Angeles Drug and Alcohol Policy Alliance
          Mothers Against Drunk Driving 
          Partnership for a Positive Pomona
          SPIRITT Family Services

          OPPOSITION: (Verified   8/12/16)

          None received
          
          ARGUMENTS IN SUPPORT:    Proponents state that "this legislation  
          establishes a reasonable training requirement.  Eighteen other  
          states and the District of Columbia already require this  
          training.  RBS training provides bartenders and servers with  
          tools to effectively identify when a patron has had too much to  
          drink and how to safely intervene if the patron attempts to get  
          into their car.  Responsible beverage training has been found to  
          increase appropriate server practices, increase refusal to serve  
          obviously intoxicated patrons, and decrease the percentage of  
          intoxicated patrons leaving an establishment.  Three years after  
          Oregon mandated responsible beverage service training, fatal  
          single vehicle nighttime crashes decreased by an estimated 23%."  


          ASSEMBLY FLOOR:  64-11, 6/2/16
          AYES:  Achadjian, Alejo, Arambula, Atkins, Bloom, Bonilla,  
            Bonta, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez,  
            Chiu, Chu, Cooley, Cooper, Dababneh, Dodd, Eggman, Frazier,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Roger Hernández, Holden,  







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            Irwin, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mayes, McCarty, Medina, Mullin, Nazarian,  
            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Mark Stone, Thurmond, Ting, Waldron, Weber,  
            Wilk, Williams, Wood, Rendon
          NOES:  Travis Allen, Baker, Brough, Dahle, Harper, Jones,  
            Mathis, Melendez, Obernolte, Steinorth, Wagner
          NO VOTE RECORDED:  Bigelow, Daly, Beth Gaines, Hadley, Kim

          Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
          8/15/16 20:10:14


                                   ****  END  ****