BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: SB 819 Hearing Date: March 8,
2016
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|Author: |Huff, et al. |
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|Version: |1/5/2016 Introduced |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Felipe Lopez |
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SUBJECT: Powdered alcohol
DIGEST: This bill would prohibit the Department of Alcoholic
Beverage Control (ABC) from issuing a license to manufacture,
distribute, or sell powdered alcohol, as defined.
ANALYSIS:
Existing law:
1)Federal Law grants states the authority to establish alcoholic
beverage laws and administrative structures to regulate the
sale and distribution of alcoholic beverages.
2)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.
3)Imposes regulations on the sale of alcoholic beverages and
creates penalties for violations of those regulations.
4)Grants ABC exclusive authority to administer the provisions of
the Act.
5)Establishes three types of alcoholic beverages for tax
purposes, namely, distilled spirits, beer and wine.
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6)Prohibits the use in any advertisement of alcoholic beverages,
of any subject matter, language or slogans addressed to and
intended to encourage minors to drink alcoholic beverages.
This bill:
1)Prohibits ABC from issuing a license to manufacture,
distribute, or sell powdered alcohol.
2)Defines "powdered alcohol" to mean a powdered or crystalline
substance that contains any amount of alcohol for either
direct use or reconstitution.
3)Requires that ABC revoke or suspend any license if the
licensee or the agent or employee of the licensee
manufacturers, distributes, or offers for retail sale powdered
alcohol.
4)Prohibits the possession, purchase, sale, offer for sale,
distribution, manufacture, or use of powdered alcohol.
5)Specifies that any person who sells, offers for sale,
manufacturers, or distributes powdered alcohol is guilty of an
infraction that shall be punishable by a fine of not more than
$500.
6)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, "the ease of this
substance presents an array of potential health problems in
California as it can be snorted, added to an energy drink,
slipped to unknowing recipients, or even added to beverages
already containing alcohol in an attempt to create a dangerously
potent concoction."
The author further argues that, "because this new drug can be
easily sold and transferred, this is a prime product for abuse
by children and teenagers. Alcohol-related harm to California
youth can present itself in several ways including death,
injuries, assaults, sexual violence, unsafe sex, suicide
SB 819 (Huff) Page 3 of ?
attempts, and academic problems. Permitting the sale of
powdered alcohol in California sends the wrong message to youth
and young adults about responsible drinking."
Powdered alcohol. As the name suggests, powdered alcohol is
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
(TBB) 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.
Palcohol creator, Mark Phillips, has stated that powdered
alcohol is ideal for such outdoor activities as hiking. The
Palcohol website had previously touted additional benefits
including that it would be easier to sneak powdered alcohol into
sporting events and concerts and the ability to sprinkle
powdered alcohol on food for "an extra kick."
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 TBB approved the
Palcohol labels in April of 2014, within two weeks the TBB
issued a statement stating that the approval had been issued in
error. However in March 2015, the TBB again approved four
powdered alcohol products with the brand name "Palcohol" for
sale in the U.S.
Shortly after TBB 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
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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 TBB, 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
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, "we
will be working on getting the production facility up and
running. It will take a while but hopefully it will be
available soon."
Suggested Amendment. The bill currently defines powdered
alcohol to mean a "powdered or crystalline substance that
contains any amount of alcohol for either direct use or
reconstitution." This definition does not take into
consideration whether the powdered alcohol is meant for human
consumption or some form of commercial application.
There has been discussion of using powdered alcohol in various
medical, manufacturing and energy applications that are not
intended for human consumption. Therefore the committee may
wish to amend the bill to define 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."
Prior/Related Legislation
AB 1554 (Irwin, 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 Governmental Organization
Committee)
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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.
AB 1598 (Beall, 2010) would have prohibited the sale,
production, importation, manufacture or distribution of a
caffeinated malted beverage, as defined. (Failed passage in
Assembly Governmental Organization Committee)
AB 346 (Beall, Chapter 624, Statutes of 2008) required that any
container of beer or alcoholic beverage that derives 0.5% or
more of its alcoholic content by volume from flavors or other
ingredients containing distilled alcohol and that is sold by a
manufacturer or importer to a wholesaler or retailer within this
state to bear a label or a firmly affixed sticker that includes
specified information regarding its alcohol content and its
status as an alcoholic beverage.
AB 1657 (Chan, 2004) would have limited the sale of any
prepackaged alcoholic beverage product made with a "gelatin"
base to businesses that prohibit the presence of persons under
the age of 21. (Failed passage in Senate Governmental
Organization Committee)
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: Yes
SUPPORT:
Alcohol Justice
California College and University Police Chiefs Association
California Alcohol Policy Alliance
California Council on Alcohol Problems
California District Attorneys Association
California Friday Night Live Partnership
California State Sheriffs' Association
Children's Hospital Los Angeles
City and County of San Francisco Board of Supervisors
City of El Cajon
City of Hayward
Consumer Federation of California
Contra Costa County Board of Supervisors
County Health Executives Association of California
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Eden Youth and Family Center
Health Officers Association of California
Institute of Public Strategies
Janus of Santa Cruz
Los Angeles County Sheriffs Department
Los Angeles Drug and Alcohol Policy Alliance
Lutheran Office of Public Policy California
Marin County Board of Supervisors
Placer County Board of Supervisors
Pueblo y Salud, Inc
Saving Lives Coalition
The Wall Las Memorias Project
Youth Leadership Institute
3 Individuals
OPPOSITION:
None Received
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."
Alcohol Justice states that, "the health and safety concerns
that have been associated with powdered alcohol include: low
cost; easy youth access; similar size and shape of packets to
nonalcoholic children's drink packets; potential mixing with a
small amount of water to make a very potent drink; mixing with
other alcoholic beverages or energy drinks; concealment by
underage drinkers attending events/locations where alcohol is
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prohibited; ingestion of the product by snorting, eating,
smoking or vaping; easy theft; possible extreme flammability,
and more."