BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          AB 2486 (Feuer)
          As Amended June 17, 2010
          Hearing Date: June 22, 2010
          Fiscal: No
          Urgency: No
          SK:jd
               
                                       SUBJECT
                                           
            Social Host Liability: Furnishing Alcohol to Underage Persons

                                      DESCRIPTION  

          Under existing law, a social host who provides alcoholic  
          beverages to any person is not liable for damages suffered by  
          that person, or for injury to the person or property of, or the  
          death of, any third person, resulting from the consumption of  
          those beverages.  This bill would instead provide that a parent,  
          guardian, or other adult could be held liable if he or she  
          knowingly furnishes alcoholic beverages at his or her residence  
          to a person under 21 years of age.

                                      BACKGROUND  

          According to the National Institute on Alcohol Abuse and  
          Alcoholism (NIAAA), approximately 5,000 people under the age of  
          21 die every year as a result of underage drinking.  This number  
          includes 1,900 deaths from car accidents, 1,600 homicides, 300  
          suicides, and hundreds of deaths from other injuries such as  
          falls, burns, and drownings.  Children who drink alcohol can  
          also face significant health risks, particularly with respect to  
          alcohol's effect on the liver and the developing brain, muscles,  
          and bones.  NIAAA also reports that research shows that serious  
          drinking problems in adulthood, such as alcoholism, often "begin  
          to appear much earlier, during young adulthood and even  
          adolescence."

          In June 2008, the Substance Abuse and Mental Health Services  
          Administration (SAMHSA) within the U.S. Department of Health and  
          Human Services reported that "[m]ore than 40 percent of the  
          nation's estimated 10.8 million underage current drinkers  
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          (persons aged 12 to 20 who drank in the past 30 days) were  
          provided free alcohol by adults 21 or older  . . .  The study  
          also indicates that one in 16 underage drinkers (6.4 percent or  
          650,000) was given alcoholic beverages by their parents in the  
          past month."  The report also found that "[a]n average of 3.5  
          million people aged 12 to 20 each year (9.4 percent) meet the  
          diagnostic criteria for having an alcohol use disorder  
          (dependence or abuse).  About one in five people in this age  
          group (7.2 million people) have engaged in binge  
          drinking-consuming five or more drinks on at least one occasion  
          in the past month."

          In order to help discourage underage drinking and hold adults  
          legally responsible when they knowingly provide alcohol to  
          minors, this bill would provide that a parent, guardian, or  
          other adult could be held liable if he or she knowingly  
          furnishes alcoholic beverages at his or her residence to a  
          person under 21 years of age.

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that everyone is responsible, not only for  
          the result of his or her willful acts, but also for an injury  
          occasioned to another by his or her want of ordinary care or  
          skill in the management of his or her property or person, except  
          so far as the latter has, willfully or by want of ordinary care,  
          brought the injury upon himself or herself.  (Civ. Code Sec.  
          1714(a).)

           Existing law  provides that it is the intent of the Legislature  
          to abrogate the holdings in cases such as Vesely v. Sager (1971)  
          5 Cal.3d 153, Bernhard v. Harrah's Club (1976) 16 Cal.3d 313,  
          and Coulter v. Superior Court (1978) 21 Cal.3d 144 and to  
          reinstate the prior judicial interpretation of Civil Code  
          Section 1714 as it relates to the proximate cause for injuries  
          incurred as a result of furnishing alcoholic beverages to an  
          intoxicated person, namely that the furnishing of alcoholic  
          beverages is not the proximate cause of injuries resulting from  
          intoxication, but rather the consumption of alcoholic beverages  
          is the proximate cause of injuries inflicted upon another by an  
          intoxicated person.  (Civ. Code Sec. 1714(b).)
           
          Existing law  provides that a social host who furnishes alcoholic  
          beverages to any person is not liable for damages suffered by  
          that person, or for injury to the person or property of, or  
          death of, any third person, resulting from the consumption of  
                                                                      



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          those beverages.  (Civ. Code Sec. 1714(c).) 

           Existing law  provides that a cause of action may be brought  
          against any liquor licensee who sells, furnishes, or gives any  
          alcoholic beverage to an obviously intoxicated minor where the  
          sale, furnishing, or giving of that beverage to the minor is the  
          proximate cause of the personal injury or death sustained by  
          that person.  (Bus. & Prof. Code Sec. 25602.1.)
           
          Existing law  provides that every person who sells, furnishes,  
          gives, or causes to be sold, furnished, or given away, any  
          alcoholic beverage to any person under the age of 21 years is  
          guilty of a misdemeanor.  (Bus. & Prof. Code Sec. 25658.)

           Existing law  provides for criminal liability for a parent or  
          legal guardian who knowingly permits his or her minor child, or  
          a minor person in the company of the child, or both, to consume  
          an alcoholic beverage at the home of the parent or legal  
          guardian under specified conditions.  (Bus. & Prof. Code Sec.  
          25658.2.)
           This bill  would provide that nothing in Civil Code Section  
          1714(c) shall preclude a claim against a parent, guardian, or  
          other adult who knowingly furnishes alcoholic beverages at his  
          or her residence to a person under 21 years of age.
           
                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            Currently, unlike the approach of the great majority of  
            states, a social host in California who provides alcoholic  
            beverages to any person, including even minors, surprisingly  
            to many, may not be held legally responsible for any damages  
            suffered by that person or by any third person resulting from  
            consumption of those beverages - even if serious injuries or  
            deaths result to minors.  . . .  According to the National  
            Institutes of Health, underage alcohol use remains a pervasive  
            and persistent problem with serious health and safety  
            consequences to minors.  Alcohol is literally the drug of  
            choice for most young people in the United States, and it is  
            still used by more young people than tobacco or illegal drugs.  
             Indeed, underage alcohol use actually kills more young people  
            than all illegal drugs combined -- and alcohol is the leading  
            contributor to death from injuries, which is the main cause of  
                                                                      



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            death for people under the age of twenty-one.  Tragically,  
            every year, roughly 5,000 young people under the age of  
            twenty-one die from causes related to underage drinking.  

            Based on the devastating consequences tied to underage  
            drinking, it is useful to consider how minors obtain access to  
            alcohol.  According to a 2005 American Medical Association  
            (AMA) survey, over half of the teens surveyed reported they  
            obtained alcohol.  Amazingly, one-third of these teens  
            responded that it was easy to get alcohol from their own  
            consenting parents, and almost half responded that it was easy  
            to get alcohol from a friend's parents.  In addition, one in  
            four teens has attended a party where minors were drinking  
            directly in the presence of parents.  

          Co-sponsor Mothers Against Drunk Driving (MADD) writes, "MADD is  
          acutely aware of the devastating results of underage drinking.   
          Alcohol plus youth is a deadly combinations, killing 6.5 times  
          more youth than all other drugs combined.  Holding social  
          host[s] accountable under civil law, for serving alcohol to  
          minors, will change conduct and prevent tragic circumstances.   
          MADD  . . .  sees AB 2486 as an opportunity to bring California  
          law into compliance with the majority of other states and more  
          importantly save lives."

          Consumer Attorneys of California (CAOC), co-sponsor, states that  
          existing law's grant of immunity to social hosts "means that no  
          matter what the circumstances and even if an adult knowingly  
          provides alcohol to a minor, there is absolutely no  
          accountability in a civil case.  We think that is wrong."  
          CAOC further points out that under the bill:

            [the parent, guardian, or other adult] is not automatically  
            liable for the injuries or deaths to the minor or any third  
            party.  AB 2486 simply removes an absolute legal impediment  
            for the family to proceed.  The family of the injured or  
            killed would still need to prove in court all of the elements  
            of negligence: a duty of care existed, a breach of that duty  
            occurred, causation, and damages.  Negligence, as a basis for  
            social host liability, is not automatic.  Each element must be  
            proven in order to give rise to social host liability.  And,  
            AB 2486 is extremely limited as it only applies to social  
            hosts who knowingly provide alcohol to minors. 
           
          2.  Bill would provide for civil liability in specified instances 
          
                                                                      



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          Existing law provides for criminal liability when a person  
          sells, furnishes, or gives alcoholic beverages to any person  
          under the age of 21 years.  And, a parent or legal guardian who  
          knowingly permits his or her minor child, or a minor person in  
          the company of the child, or both, to consume an alcoholic  
          beverage at the home of the parent or legal guardian under  
          specified conditions may also be held criminally liable.  

          There is no civil liability, however, for a parent, legal  
          guardian, or other adult who knowingly provides alcohol to  
          underage persons.  In fact, California's "social host liability"  
          statute expressly bars such an action, providing that a social  
          host who furnishes alcoholic beverages to any person is not  
          liable for damages suffered by that person, or for injury to the  
          person or property of, or death of, any third person, resulting  
          from the consumption of those beverages.  This bill would carve  
          out an exception to this immunity by providing that a parent,  
          guardian, or other adult could be held civilly liable if he or  
          she knowingly furnishes alcoholic beverages at his or her  
          residence to a person under 21 years of age.

          As co-sponsor CAOC notes, a plaintiff bringing an action under  
          this provision would still need to meet all of the elements of a  
          negligence action: duty, breach, causation, and damages.  With  
          respect to causation, Civil Code Section 1714(b) provides that  
          it is the intent of the Legislature to abrogate certain cases in  
          which the courts held that the furnishing of alcoholic beverages  
          can be the proximate cause of injuries sustained by a third  
          party.  The statute provides instead that the furnishing of  
          alcoholic beverages is not the proximate cause of injuries  
          resulting from intoxication, but rather the consumption of  
          alcoholic beverages is the proximate cause of injuries inflicted  
          upon another by an intoxicated person.  

          This bill, by specifying that a parent, guardian, or adult could  
          be held civilly liable if he or she knowingly furnishes  
          alcoholic beverages at his or her residence to an underage  
          person, is intended to provide that proximate cause may be found  
          in this instance.  The author notes that "the general 'proximate  
          cause' rule barring suits against the providers of alcohol  
          clearly should not apply.  . . .  the very narrow circumstances  
          covered by this measure strike at the heart of adult  
          responsibility for children.  Allowing adults to be potentially  
          held accountable for the injuries that can result to  
          children-too often tragically including death-when they  
          knowingly provide alcoholic beverages to children is not only  
                                                                      



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          reasonable, it is imperative to protect the health and safety of  
          our children."  In other words, the intent of this bill is to  
          provide that the furnishing of alcoholic beverages in these  
          instances can be the proximate cause of injuries sustained by a  
          third party.  In order to clarify this point, the author has  
          agreed to the following amendment: 

             Suggested clarifying amendment :

            On page 2, line 32, after "age" insert ", in which case,  
            notwithstanding subdivision (b), the furnishing of the  
            alcoholic beverage may be found to be the proximate cause of  
            resulting injuries or death."

          3.  Civil liability when adults knowingly provide alcohol to  
            minors: other states  
          
          A number of other states impose civil liability upon adults when  
          they knowingly provide alcohol to minors.  According to the  
          author's office, the following states permit such liability:  
          Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut,  
          Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa,  
          Louisiana, Maine, Massachusetts, Michigan, Minnesota,  
          Mississippi, Montana, Nebraska, Nevada, New Hampshire, New  
          Jersey, New Mexico, New York, North Carolina, North Dakota,  
          Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas,  
          Utah, Vermont, Washington, Wisconsin, and Wyoming.  


           Support  : Board of Supervisors of the County of Santa Clara

           Opposition  :  None Known

                                        HISTORY
           
           Source :  Consumer Attorneys of California; Mothers Against Drunk  
          Driving (MADD)

           Related Pending Legislation  :  None Known 

           Prior Legislation  :  None Known

           Prior Vote  :

          Assembly Judiciary Committee (Ayes 10, Noes 0)
          Assembly Floor (Ayes 73, Noes 0)
                                                                      



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