BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 819|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 819
Author: Huff (R), et al.
Amended: 6/28/16
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 3/8/16
AYES: Hall, Berryhill, Block, Gaines, Glazer, Hernandez, Hill,
Hueso, Lara, McGuire, Runner, Vidak
NO VOTE RECORDED: Galgiani
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 39-0, 4/18/16
AYES: Allen, Anderson, Bates, Beall, Berryhill, Block,
Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,
Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,
Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,
Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,
Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR: 79-0, 8/24/16 - See last page for vote
SUBJECT: Powdered alcohol
SOURCE: Author
DIGEST: This bill prohibits the purchase, sale, offer for
sale, distribution, manufacture, possession, or use of powdered
alcohol, as defined. Additionally, this bill requires the
Department of Alcoholic and Beverage Control (ABC) to revoke the
license of any licensee who manufacturers, distributes, or sells
powdered alcohol.
SB 819
Page 2
Assembly Amendments (1) delete the $125 fine for any person who
possesses, purchases, or uses powdered alcohol, (2) add Assembly
Members Chavez, Cooper, Gipson, and Lackey as coauthors, and (3)
make minor technical changes.
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:
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.
5)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 the purchase, sale, offer for sale, distribution,
manufacture, possession, or use of 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)Requires ABC to revoke or suspend any license if the licensee
or the agent or employee of the licensee manufactures,
distributes, or offers for retail sale powdered alcohol.
SB 819
Page 3
4)Specifies that any person who sells, offers for sale,
manufactures, or distributes powdered alcohol is guilty of an
infraction that shall be punishable by a fine of not more than
$500.
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
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
(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
SB 819
Page 4
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
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 Web site 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."
Related/Prior 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
SB 819
Page 5
manufactures, distributes, or sells powdered alcohol, as
provided. (To Engrossing and Enrolling)
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 the
Assembly Governmental Organization Committee)
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Assembly Appropriations Committee, minor
absorbable workload to ABC to monitor and enforce the provisions
of this bill.
SUPPORT: (Verified8/24/16)
Alcohol Justice
American Nurses Association, California Chapter
Association of California Health Care Districts
California Academy of Family Physicians
California Academy of Preventative Medicine
California Alcohol Policy Alliance
California Association of Driving Under the Influence Treatment
Programs
California Beer and Beverage Distributors
California College and University Police Chiefs Association
California Council on Alcohol Problems
California District Attorneys Association
California Public Health Association
California School Employees Association
California State Parent Teacher Association
California State Sheriffs Association
Children's Hospital Los Angeles
SB 819
Page 6
City of El Cajon
City of Hayward
City of Los Angeles
City of San Francisco
Consumer Federation of California
Contra Costa County Board of Supervisors
County Behavioral Health Directors Association
County Health Executives Association of California
County of Los Angeles, Office of the Sheriff
Dolores Huerta Foundation
Eden Youth & Family Center
El Dorado County Board of Supervisors
Friday Night Live
Health Officers Association of California
Institute for Public Strategies
Janus of Santa Cruz
Los Angeles Drug and Alcohol Policy Alliance
Lutheran Office of Public Policy-California
Marin County
National Council on Alcoholism and Drug Dependence of San
Fernando Valley
Partnership for a Positive Pomona
Placer County Board of Supervisors
Pueblo Y Salud
San Bernardino County Sheriff
Saving Lives Coalition
Shields for Families
Social Model Recovery Systems, Inc.
Sonoma County Board of Supervisors
The McGeorge Clinic
The Wall Las Memorias Project
Ventura County Board of Supervisors
Youth Leadership Institute
OPPOSITION: (Verified8/24/16)
Palcohol
ARGUMENTS IN SUPPORT: According to the California Alcohol
Policy Alliance, "powdered alcohol is perhaps the most
SB 819
Page 7
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 Officers 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: According to Palcohol, "a study
shows that 80% of Californians that drink want to use powdered
alcohol for travel and outdoor recreation. In addition, because
Palcohol is so much lighter to ship than liquid alcohol, it will
reduce the carbon footprint."
ASSEMBLY FLOOR: 79-0, 8/24/16
AYES: Achadjian, Alejo, Arambula, Atkins, Baker, Bigelow,
Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos,
Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh,
Dahle, Daly, 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, Mathis, Mayes,
McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Travis Allen
SB 819
Page 8
Prepared by:Felipe Lopez / G.O. / (916) 651-1530
8/25/16 17:54:19
**** END ****